EUR/JPY finds resistance below 124.50

EUR/JPY climbed to 124.45 after the beginning of the American session and then lost bullish momentum. The euro failed to break above 124.50 and pulled back. 

The pair is now trading around 124.20, at the lowest point of the American session as the yen gains momentum amid a decline in US equity prices. The Dow Jones turned negative and is falling 0.18%.  USD/JPY is moving away from daily highs. 

Despite the recent pullback EUR/JPY is still in positive territory for the day. Earlier it bottomed at 123.65, the lowest since Friday but turned to the upside. 

Technical outlook 

EUR/JPY is facing a strong resistance around 124.50/60 and while it remains below the upside seems limited. A break higher could clear the way to more gains. 

In the very short-term momentum is still positive. A decline below 124.00 could change the tone for the day and could expose daily lows. 

The key support is seen around 123.60/70, that was a relevant resistance last week. If the pair drops below it would be back into the previous range (122.70 - 123.70).