EUR/JPY Price Analysis: Correction lower looks supported near 124.30

• EUR/JPY eases from last week’s new 2020 tops near 126.80.
• A deeper pullback is seen as corrective only and could test 124.30.

EUR/JPY’s is now seeing some selling mood after printing fresh 2020 highs around 126.70 in the second half of last week, levels last traded in April 2019.

Despite the ongoing correction, the move is seen as a “buy on dips”, as the upside bias remains well in place. That said, if the 126.80 region is cleared, then there are no relevant hurdles until the March 2019 high in the 127.50 region. The pullback, instead, carries the potential to extend to the 124.30 region, area seen earlier in the month.

The constructive view around EUR/JPY is predicted to remain unchanged while above the 200-day SMA at 120.24.

EUR/JPY daily chart