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  • EUR/JPY bounced off the area of yearly lows in the mid-117.00s on Tuesday in response to a sharp sell off in the Japanese safe haven. The abrupt up move, however, stalled just ahead of the 21-day SMA, today at 119.87
  • Looking at the broader picture, the negative stance on the cross is expected to remain unchanged while below the 121.14/25 band, where coincide the short-term resistance line and the 55-day SMA. Above this area the downside pressure should mitigate somewhat.
  • If the cross manages to clear this key barrier, the late July tops in the 122.30 area should return to the radar.

EUR/JPY daily chart