EUR/JPY Price Analysis: Stays above 21-day EMA for third day
- EUR/JPY prints mild gains above 125.50 after halting a three-day winning streak on Monday.
- Monthly falling trend line lures the bulls but bearish MACD will question further upside.
- 124.45/40 will gain the sellers’ attention on the break of immediate EMA support.
EUR/JPY eases from the intraday top of 125.75 to 125.67 while heading into Tuesday’s European session. Even so, the pair prints 0.18% gains on a day by the press time as the 21-day EMA keeps sellers away.
Considering the pair’s sustained trading beyond short-term key EMA, buyers may target the resistance line of a short-term descending triangle, at 126.16 now.
Though, bearish MACD may question the bulls afterward, which if ignored can challenge the monthly top near 127.10 during the further upside.
Meanwhile, the EUR/JPY downside break of the 21-day EMA level of 125.44 may avail 124.70 as an intermediate halt before revisiting the triangle’s support, currently around 124.40.
If at all the bears sneak in around 124.40, they would need to conquer the late-July top surrounding 124.30 before targeting a sub-123.00 area.
EUR/JPY daily chart
Trend: Further recovery expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
