EUR/JPY recedes from tops near 125.30

• The cross loses upside momentum along with EUR selling.
• EUR/JPY failed once again beyond the 125.00 handle.
• Daily support has so far emerged around 124.70.

EUR/JPY is now giving away part of its initial gains and is returning to the boundaries of 125.00 the figure amidst some renewed selling mood in the European currency.

EUR/JPY upside capped near 125.20

After clinching new highs in the 125.20 area, the cross came under downside pressure and is now holding on to the critical 125.00 neighbourhood.

A bout of EUR-weakness has impacted on the cross and forced it to fade the initial uptick to the 125.20/30 band, the critical upper bound of the sideline theme in place since the start of the year.

Alternating risk appetite trends continue to dictate the price action in the global assets, with the Brexit negotiations, the US-China trade talks and the upcoming FOMC meeting poised to drive the sentiment in the near term.

EUR/JPY relevant levels

At the moment the cross is gaining 0.04% at 124.97 and a break above 125.31 (2019 high Jan.25) would open the door to 126.70 (55-day SMA) and finally 127.09 (high Dec.27 2018). On the flip side, the next support aligns at 124.57 (10-day SMA) followed by 124.40 (21-day SMA) and then 123.39 (low Jan.15).