EUR/JPY: can the cross gather further demand on 130 handle despite hourly extended wick?

Currently, EUR/JPY is trading at 129.98, up 0.82% on the day, having posted a daily high at 130.30 and low at 128.78.

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EUR/JPY has since hit a wall on the 130 handle with an extended wick on the 2pm GMT London hourly stick, often a sign of upside exhaustion. However, in EUR/USD, the underlying bull structure remains with a break of the 2016 1.1616 high and 1.1700  remains compelling should 1.1580 hold. But, for EUR/JPY to make further advances on the session, USD/JPY will need to gather demand in a continuation of the hourly minor correction and the political uncertainty in the US is not doing any favours for the bulls on Wall Street today. 

EUR/JPY levels

Analysts at Commerzbank explained that the market has failed on its initial attempt on the 200-week ma at 130.68 and is easing back from here. "Dips lower should find that the previous May high offers initial support at 125.80, together with the 126.61 uptrend. Initial support is 127.35 the end of June low. Above 130.71/76 targets 134.32/61.8% of the move down from 2014. Where are we wrong near term? The uptrend guards 122.56/40, the 18th May low and the recent low."