EUR/JPY Technical Analysis: Bounce off 125.00 could extend to 129.00

• EUR/JPY is extending the rebound from recent lows in the 125.00 neighbourhood and has already regained the 127.30 region, closer to the 61.8% Fibo retracement of the May-July up move.
• While above recent lows near 125.00, a potential test of the 129.00 area remains well on the cards, although the cross should first clear the 21-day SMA at 128.28 seconded by the 200-week SMA in the 128.60 area.
• A surpass of the 129.00 area should allow for another test of the critical 200-day SMA in the 131.40 zone ahead of July’s peak just beyond the 132.00 mark.

EUR/JPY daily chart

Daily high: 127.37

Daily low: 126.26

Support Levels

S1: 126.12

S2: 125.88

S3: 125.68

Resistance Levels

R1: 126.58

R2: 126.78

R3: 127.03