Ransquawk

Last month, the Euro/Yen exchange rate strengthened, moving from support close to 124.20 to the resistance zone, where the horizontal level of 127.00 coincides with the broken upward trend line running from the 2016 low.

In March, the bulls have already reached new maximum and are still testing the above-mentioned resistance zone. In this case, the 10-month average (EMA) may be an additional obstacle to growths.

After switching to the daily chart, we can see that EUR/JPY quotations are correcting the last upward movement. From the point of view of technical analysis, the level of 125.87, which is within the dynamic support provided by the EMA 10/20 channel, may be of great importance in stopping the declines.

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If support is maintained, we can expect that buyers will try to push the trend forward. Alternatively, closing the daily session under the confluence zone of support may release a deeper decline in price. The key horizontal support will then be around 124.22.

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