- EUR / JPY manages to bounce from recent lows near 125.00.
- Then, to the upside, the 2021 high appears in the 127.50 area.
The resumption of the bullish bias allows for additional gains in EUR / JPY in the short term with the next target at the peaks of the year high in the region of 127.50. On the opposite side, in case the bearish tone becomes dominant again, then a move below the 125.00 area should not be ruled out.
A break out of this region should expose the 100-day SMA at 124.75 before the Fibonacci retracement (from the October-January rally) at 124.55.
Looking at the bigger picture, as long as it remains above the 200 SMA at 122.76, the outlook for the crossover should remain constructive.
The cross is favored on Tuesday by an advance of both the EUR / USD and the USD / JPY. The rise of the former is behind the weakness of the dollar and optimism in the equity markets, while in the case of USD / JPY it may be due to the rise in the yields of Treasury bonds.
EUR / JPY day chart
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