EUR/JPY Technical Analysis: Squeeze higher could re-test the 21-day SMA at 124.59

• EUR/JPY is seeing some respite on Tuesday and has managed to regain some buying interest beyond 123.00 the figure.
• As long as the multi-month resistance line at 126.03 caps the  upside, the negative bias should remain unchanged in the cross. Therefore, a deeper retracement is favoured, with immediate target at monthly lows in the mid-122.00s ahead of June 2017 lows around 122.40 followed by January’s ‘flash crash’ to sub-119.00 levels.
• The downside pressure is expected to mitigate somewhat on a surpass of the 124.59/125.20 band, where coincide the 21-day, 100-day and 55-day SMAs.

EUR/JPY daily chart