EUR/JPY Technical Analysis: Transitory support emerged at 121.50. Negative view remains intact

• The cross remains under pressure despite the ongoing rebound from Wednesday’s 4-month lows in the mid-121.00s.
• In case the recovery gathers further traction, EUR/JPY is seen facing the next hurdle at the 21-day SMA just below 123.00 the figure ahead of the more relevant 123.75 (high May 21). Above this area, the downside pressure is expected to mitigate somewhat.
• As long as the multi-month resistance line at 125.48 caps the upside, the negative view on the cross should remain unchanged with immediate target at the mid-119.00s, or February 2017 lows.

EUR/JPY daily chart