- EUR / JPY extends the slide below the 129.00 level.
- Monthly lows in the 128.20 area should provide initial support.
EUR / JPY continues to correct lower after last week’s rejection from the 129.60 region, where the monthly highs are.
The firmer note around the dollar weighs on the single currency and motivates the EUR / JPY to correct down to the zone below 129.00 despite persistent selling pressure on the Japanese yen at the beginning of the week.
Despite the move to the downside, the bulls still appear to be in control and continue to target the 2021 highs just below 130.00 (Feb 25). Above this area is 130.14 (November 7, 2018 high) before the 2018 summer high at 131.98 (July 17 high).
Reinforcing the idea of ​​more raises, the EUR / JPY continues to trade above the immediate support line (from the low of November 19, 2020) in the neighborhood of 127.00, where the 50-day simple moving average also converges.
In a general perspective, as long as it is above the 200 SMA at 124.56, it will continue to point higher.
EUR / JPY day chart
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