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  • EUR/JPY making a series of higher lows with eyes on the 200-DMA.
  • Pullbacks likely to hold 119.40/118.80.

With the 6-month downtrend at 118.77 in the rearview mirror, EUR/JPY had accomplished the  120 handle and now the 121 handle, testing the 121.50 highs having broken beyond the July highs. The cross is basing in the 120s at this juncture and has not looked back for nine consecutive days of higher closing lows.  

The next stop  for the bulls will be the  200-day moving average of 122.20. “We note the 13 count on the 240-minute chart, but pullbacks are indicated as likely to hold 119.40/118.80. Dips lower will find support at the 55-day ma at 118.32/28 ahead of the 117.49 uptrend,” analysts at Commerzbank argued.  

EUR/JPY daily chart