EUR/JPY Price Analysis: Sellers look for entry below 61.8% Fibonacci retracement

• EUR/JPY keeps recovery moves from 200-bar SMA to waver around the intraday high of 125.74.
• Multiple bounces off the key Fibonacci retracement level, failures to stay under important SMA favor the buyers.
• Bulls aim for monthly top, sellers can have July 28 peak as additional support.

EUR/JPY picks up bids around 125.66, up 0.2% daily, while heading into the European session on Friday. In doing so, the Euro cross trims the previous day’s fall from the weekly top while bouncing off 200-bar SMA.

While observing the quote’s multiple pullbacks from 61.8% Fibonacci retracement of July 24 to September 01 upside, coupled with normal RSI conditions, the EUR/JPY prices are likely to keep the upside momentum.

As a result, buyers can eye for the fresh monthly peak if manage to cross the immediate resistances of 126.46 and 126.75, comprising the weekly top and August 13 top respectively.

During the pair’s run-up beyond 127.07, March 2019 high if 127.50 could lure the bulls.

On the contrary, a downside break of 200-bar SMA, at 125.34 now, will attack 50% and 61.8% Fibonacci retracement levels, near 124.95 and 124.45 in that order.

Though, any further declines past-124.45 will be questioned by the late-July high near 124.00 ahead of the July 24 low of 122.84.

EUR/JPY four-hour chart

Trend: Bullish