- EUR / JPY bounces after bottoming out near 126.00.
- Further losses are expected to lead to a test of the 125.60 area.
Sellers have so far failed to drag EUR / JPY further below the 126.00 zone this week. The ongoing bounce is considered corrective only and could be part of a wider range of 126.00-127.50. Should the 126.00 level break, then there is a chance of a deeper move towards the 125.60 region (Jan 27 low).
No change at the top, where the 2021 highs around 127.50 remain the next significant hurdle. If this area clears, then there are no noticeable barriers until the November 2018 highs in the 130.10 / 15 band.
In a broader perspective, as long as EUR / JPY remains above the 200-day SMA at 123.38, the outlook for the cross should remain constructive.
EUR / JPY day chart