EUR/JPY technical analysis: Upside capped by 50-D EMA

• 50-D EMA caps a week old recovery portrayed by immediate ascending trend-line.
• 123.64/65 can please buyers during further upside.

Failure to cross 50-D EMA seems to drag the EUR/JPY pair back to a week old support-line as it declines to the intra-day low of 122.45 during the early Asian session on Friday.

On a break of 122.28 ascending trend-line support, the quote can further decline towards 121.65 ahead of highlighting recent lows surrounding 121.00 and 120.78.

During the pair’s additional weakness past-120.78, 120.00 and the year’s bottom near 118.70 could gain bears’ attention.

Alternatively, an upside clearance of 50-day exponential moving average (50-D EMA) can quickly trigger the pair’s fresh upside towards 123.64/65 comprising March month low and May 10 high.

Adding to the upside could be 100-D EMA level of 123.90 and 50% Fibonacci retracement of March – June downpour near 124.14.

EUR/JPY daily chart

Trend: Bearish