EUR/JPY Price Analysis: Consolidation while above 124.30 seems likely

• Euro gains versus yen on Monday but fails to recover key level.
• EUR/JPY rises but still remains on corrective mode.

The EUR/JPY pair posted the first weekly loss on Friday after rising during eight consecutive weeks. The correction from 126.75 (one-year high) extended to 124.42 (Aug 21 low).

The rebound in EUR/JPY follows six days in a row of losses and so far it seems normal. The immediate support stands at 124.30. A consolidation below is needed in order to clear the day to more weakness toward 123.80. The next strong barrier emerges at 122.80/90.

At the moment, EUR/JPY is hovering around the 20-day moving average near 125.00. The immediate resistance is seen at 125.30. The euro needs to rise further and hold above 125.60, to recover strength and attempt another run to the 126.50 that protects the recent highs.

EUR/JPY daily chart