EUR/JPY Price Analysis: Bullish, still unable to run above 127.00

• EUR/JPY is retreating after hitting on Tuesday at 127.22, the highest level since February 2019.
• Outlook favors more gains for the euro that needs to hold above 127.00.

The EUR/JPY pair is pulling back from the highest levels since 2019 and after being unable to hold above 127.00. The correction found support at 126.45 and rebounded, rising above 126.90.

The technical outlook points to the upside. The euro needs to break and hold above 127.00 to clear the way to more gains, probably targeting the 2019 high at the 127.50 zone.

A retreat below 126.50 would ease the bullish pressure, while a close under 126.00 should be followed by a sharper correction with EUR/JPY under key short-term moving averages. The next strong support stands at 124.85/125.00, followed by an uptrend line from July, today at 122.80.

EUR/JPY daily chart