EUR/JPY trims intraday losses

FXStreet (Córdoba) - The yen strengthened Monday, dragging EUR/JPY to 5-day lows, as risk appetite was hit by Chinese PMI which showed manufacturing activity contracted for a fourth straight month in April.

However, as European traders join in the EUR/JPY finds itself better bid, trimming intraday losses. The EUR/JPY is currently trading at the 141.55 area, still down 0.16% on the day, having bottomed out at 141.27, where the 100-day SMA offered support.

EUR/JPY levels to watch

As for technical levels, if the EUR/JPY continues to recover ground, it could face next resistances at 141.85 (May 5 high), 142.00 (psychological level) and 142.37 (May 2 high). On the flip side, supports are seen at 141.27 (May 5 low/100-day SMA), 141.11 (Apr 30 low) and 140.98 (Apr 28 low).

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