EUR/JPY Price Analysis: Recovery targets the 122.00 area

• EUR/JPY is reversing the recent pessimism and regains poise on Monday.
• The next stop on the upside emerges at last week’s peaks around 122.00.

Following two consecutive daily pullbacks, EUR/JPY has managed to reclaim buying interest and advance beyond the 121.00 yardstick at the beginning of the week.

If the buying interest picks up pace and manages to clear the 122.00 area, then the yearly tops in the 124.40/45 band should emerge on the horizon.

As long as the 200-day SMA near 119.72 holds the downside, the outlook on the cross is seen as constructive. This contention area is also reinforced by June’s lows in the 119.30 region.

EUR/JPY daily chart