EUR/JPY drops to 122.50, upside seems capped around 123.00

The EUR/JPY pair remained under pressure and turned lower from 20-day SMA resistance to currently trade near the mid-point of 123.00-122.00 handle.

Following its decline below 123.00 handle earlier during the week on Monday, the pair struggled to sustain its strength above 123.00 handle and remained anchored below 20-day SMA region. The pair is now heading towards its weekly low level of 122.26 touched on Thursday and is set for its first week of decline in the previous four, erasing all of its last week's gains.

Technical levels to watch

Below 122.25-20 weekly low support, the pair is likely to accelerate the fall towards recent multi-month lows support near 121.75-70 region.

Meanwhile on the upside, 123.00 handle (nearing 20-day SMA) might continue to cap immediate upside, which if conquered seems to assist the pair further towards 123.60-65 horizontal resistance.