EUR/JPY Price Analysis: The 122.90 region holds the downside so far

• EUR/JPY is fading part of Monday’s pullback above the 123.00 area.
• The key support area around 122.90 holds the downside so far.

EUR/JPY now seems to have entered into a consolidative phase around the mid-123.00s in the unchanged context of firm JPY-buying and despite the positive outlook in the shared currency.

Extra upside momentum remains well on the cards in spite of the ongoing corrective downside and is expected to target the 2020 peaks beyond the 124.00 mark in the short-term horizon. If sellers regain the upper hand, then the leg lower could test the short-term support line, today around 121.15.

As long as EURJPY trades above the 200-day SMA at 119.94, the bullish outlook is expected to remain unchanged.

EUR/JPY daily chart