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  • EUR/JPY eases from intraday high, posts heaviest gains in two weeks.
  • Descending trend line from February 25 probes bulls targeting fresh high since November 2018.
  • One-month-old support line, 200-bar SMA raise bars for bears’ entry.
  • Upbeat MACD, sustained trading above key trend line, SMA favor bulls.

EUR/JPY bulls catch a breather around 129.40, up 0.30% intraday, during early Tuesday. In doing so, the quote rallies the most since February 24 while defying the previous two-day losing streak.

However, the bulls need validation from a downward sloping trend line from February 25, currently around 129.50, to keep the pair directed towards the yearly top near the 130.00 threshold.

While the EUR/JPY run-up beyond an ascending support line from early February joins the recently upbeat MACD signals to keep buyers hopeful, the pair’s rally past-130.00 needs to cross the November 2018 peak surrounding 130.15-20 to keep the reins.

On the flip side, pullback moves may eye for the stated support line near 128.75, a break of which will direct EUR/JPY sellers to a 200-bar SMA level of 127.53.

Also acting as the downside barrier below around key SMA is January’s top of 127.50.

EUR/JPY four-hour chart

Trend: Pullback expected