EUR/JPY Price Analysis: Initial support lies at 124.44

• EUR/JPY briefly tested the area above the 126.00 mark on Wednesday.
• Occasional pullbacks should meet support near 124.40 (weekly lows).

Following last week’s 2020 tops near 126.80, EUR/JPY has embarked in a corrective downside which met quite decent contention in the 124.50/45 band (August 21).

The subsequent rebound managed to advance past 126.00 the figure earlier on Wednesday, although the move lacked follow through and sparked a knee-jerk that carries the potential to extend, initially, to recent lows near 124.40.

The constructive view around EUR/JPY is predicted to remain unchanged while above the 200-day SMA at 120.42.

EUR/JPY daily chart