EUR/JPY Technical Analysis: Rejection from 126.00 could extend to 124.72, 21-day SMA

• The cross failed to extend the squeeze higher further north of the 126.00 handle earlier in the week, instead sparking a so far 2-day correction lower.
• The continuation of the selling impetus could see the 21-day SMA in the 124.70 area re-tested in the near term ahead of Friday’s lows at 124.36.
• The resumption of the uptrend is expeted to initially test recent tops in the 126.00 neighbourhood ahead of 126.61, where sits the multi-month resistance line.

EUR/JPY daily chart