EUR/JPY slammed to 122.00 handle on global risk-off

Risk-off sentiment, as depicted by weakness in global equity markets, seems to boost the safe-haven appeal of the Japanese currency and weighing on the EUR/JPY cross that has now dropped to a 3-week low level of 122.00. 

The pair on Tuesday attempted to extend its Monday's up-move, but the up-move stalled at the near-term trading range resistance near 124.15-20 area. The pair reversed from 124.00 handle and was battered to 122.00 handle, its lowest level since May 9.

From technical perspective, the pair has now moved back to the lower end of its four-week trading range. Moreover, repeated failures to sustain any up-move beyond 124.00 handle points to resumption of the pair's prior downward trajectory once the 122.00 support is broken decisively.

Technical levels to watch

On a sustained weakness below 122.00 level, the pair seems to immediate drops towards retesting multi-month lows support near 121.70-65 zone, earlier tested in April and May. A decisive break below this recent lows support now seems to open room for further depreciating move towards testing its next major support near 119.00 level in the near-term.

Meanwhile, any attempts of recovery might now face immediate resistance near 122.55-60 area, ahead of 123.00 round figure mark resistance (nearing 20-day SMA). Recovery back above 123.00 level would confirm the near-term range-bound trade, thus assisting the pair back towards retesting 124.00 handle.