- EUR / JPY fades Monday’s advance and breaks 129.00.
- Next, to the downside, emerges the region of 127.70.
The EUR/JPY It breaks below the 129.00 support and extends the corrective downside at the 128.90 / 80 zone at the reversal on Tuesday.
Despite the knee-jerk reflex, the positive bias at the crossover remains unchanged for the time being. Against that, there is still more upside on the charts and the breakout of the yearly highs near 130.70 should allow for additional gains with an immediate target at the 131.00 hurdle followed by the summer 2018 high of 131.98 (July 17) .
However, if the selling momentum gathers additional strength, then the next target to highlight will be at the 127.70 area, where the immediate support line (away from the lows of November 19, 2020) and the 50-day SMA coincide. . Below this zone, upward pressure is expected to lose traction.
Meanwhile, as long as it is above the 200-day SMA at 125.01, the broader outlook for the cross should remain constructive.
Daily chart
Technical levels
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