• EUR/JPY recovery from 121.71 (new 3-year lows) capped ahead of 61.8% Fib of 128.22 to 121.71 fall at 125.73.
   
• Renewed bout of risk aversion in the Asian markets sending the Japanese stocks deeper in the red amid strengthening yen.
   
• BOJ policy decision due in the Asian morning this Thursday, where the Bank of Japan is expected to announce at least some risk-positive policy tweaks.
   
• Daily cloud weighs on the upside, pair unable to hold gains, is struggling at the 125 handle.
   
• Stochs and MACD on daily charts are biased higher, while RSI holds above the 50 levels.
   
• The pair is trading in a narrow range, 125.39/124.91, weakness only on breaks below 124.68 (5-DMA).
   
• Immediate resistance is seen at 125.14 (converged 2H 5&10-SMA), 125.39 (session highs) and 125.50 (April 22nd highs).
   
• Supports on the downside are seen at 124.80 (April 25th lows), 124.68 (5-DMA) and 124.20 (38.2% Fib of 128.22 to 121.71 fall).