EUR/JPY: Rally losses strength near 124.00

EUR/JPY  is having the best day in two weeks, as it consolidates gains around 123.70. The pair lost strength near  the 124.00 handle and pulled back modestly.

EUR/JPY ahead of relevant resistance levels

It  opened the week around 122.70 and then, a weak Japanese yen boosted the pair that rose more than a hundred pips. On European hours, it peaked at 123.89, the highest level in a week and then retreated finding support above 123.50. During the last hours, it has remained steady moving in a range between 123.60 and 123.85, confirming strong gains.

Despite the rally and the important gains, on a  wider perspective EUR/JPY still has a bearish bias but today it managed to climb back above the 20-day moving average for the first time in two weeks.

To the upside, the euro faces two relevant resistance levels. The first one it the 124.00 zone, that hast been capping the upside since May 17; above the next level to watch is a dynamic resistance, a downtrend line that currently stands around 124.50. A break and a consolidation on top of 124.50 could open the doors for more gains and could remove medium-term bearish pressure.