EUR/JPY Price Analysis: Bounces off one-week low despite bearish MACD

• EUR/JPY snaps two-day losing streak while recovering from 124.34.
• July 22 high offers immediate support, 125.00 becomes nearby resistance to watch.
• 21-day SMA and three-month-old support line add to the downside barriers.

EUR/JPY picks up the bids near 124.48, up 0.07% on a day, during the early Tuesday’s trading. The quote recently recovered from July 22 top, also comprising the lowest levels in a week, while disturbing the previous declines during Friday and Monday.

Although MACD conditions are against the latest pullback, sellers will not risk taking entries unless the quote slips below 124.30, comprising the mentioned late-July top. Hence, bulls may eye 125.00 as an immediate target ahead of challenging the monthly peak surrounding 125.60.

In a case where the buyers keep the reins past-125.60, the 126.00 threshold will be on their radars.

Meanwhile, a 21-day SMA level of 123.78 will precede the ascending trend line from May 07, at 123.00 now, to challenge the bears below 124.30.

If at all the pair declines below 124.30 on a daily closing basis, the early-July peak close to 122.00 will lure the sellers.

EUR/JPY daily chart

Trend: Bullish