- EUR / JPY is declining after hitting 127.22 on Tuesday, the highest level since February 2019.
- The outlook favors more gains for the euro, which should stay above 127.00.
The pair EUR/JPY it is retreating from the highest levels since 2019 and after failing to stay above 127.00. The correction found support at 126.45 and rebounded, climbing above 126.90.
The technical outlook is on the upside. The euro needs to break out and hold above 127.00 to clear the way for further gains, probably targeting the 2019 high at the 127.50 zone.
A pullback below 126.50 would ease the upward pressure, while a close below 126.00 should be followed by a sharper correction with EUR / JPY below key short-term moving averages. The next strong support is located at 124.85 / 125.00, followed by an uptrend line from July, today at 122.80.