• EUR/JPY bounced off from fresh 3-year lows at 121.71 on Monday and is holding gains above the 123 handle.
   
• Markets await the crucial Germany ZEW Economic Sentiment data due ahead in the European session.
   
• The indicator improved to 4.3 points in March, however fell short of expectations at 6.3 points.
   
• For April, the markets are expecting a strong improvement in the report, with a forecast of 8.2 points.
   
• Any disappointment could drag the pair to 122 levels, while upbeat data could see test of 124.20 (38.2% Fib retrace of 128.22 to 121.71 fall). 
   
• Technicals are not conclusive for any direction, but short-term bias remains higher.
   
• Support on the downside aligns at 123.37 (10-DMA), 123.14 (5-DMA) and then at 123 (session lows).
   
• Resistances are located at 123.56 (Apr 15th highs and day's high till now), 123.73 (Apr 11th high) and 124.