EUR/JPY Price Analysis: Looks supported by the 21-day SMA near 125.30

• EUR/JPY’s upside met strong resistance above 126.00 the figure.
• Occasional pullbacks should meet support near 124.40.

Following 2020 tops near 126.80 recorded earlier in the month, EUR/JPY has since embarked in a corrective downside which met quite decent contention in the 124.50/45 band (August 21).

The subsequent rebound managed to advance past 126.00 the figure earlier in the week, although the move lacked follow through. Against this, initial albeit temporary support is located near 125.30, where sits the 55-day SMA, ahead of the more relevant contention area near 124.40.

The constructive view around EUR/JPY is predicted to remain unchanged while above the 200-day SMA at 120.45.

EUR/JPY daily chart