- EUR / JPY extends Monday’s losses below the 127.00 level.
- Annual highs near 127.50 appear as the next hurdle.
Monday’s test of levels above the 127000 region appears to have motivated the bears to return to the market, triggering the current correction in the EUR / JPY cross.
Meanwhile, the price action around the EUR / JPY could remain in the form of a very short-term side consolidation, with the upper end at this week’s highs above 127.00 and decent support near the 126.00 region. The 55-day SMA at 126.06 also reinforces this level.
If the EUR / JPY recovers above 127.00, it should open the door for a possible visit from the 2021 highs around 127.50, reached on January 7. Higher up, attention is focused on the 129.30 zone (November 29-December 13, 2018 highs) before that month’s highs at 130.14 (November 7, 2018).
Looking at the bigger picture, as long as the EU / JPY remains above the 200 day SMA today at 123.47, the outlook should remain constructive.
EUR / JPY daily chart
EUR / JPY technical levels
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