EUR/JPY Price Analysis: Decent support emerged near 122.90

• EUR/JPY stays on the defensive but managed to regain 123.00.
• The key support area around 122.90 holds the downside so far.

EUR/JPY keeps correcting lower on the back of renewed JPY-buying and despite the firm performance of the European currency. Friday’s pullback met support in the 122.90 region, where sits the January peak.

Extra upside momentum remains well on the cards in spite of the ongoing corrective downside and is expected to target the 2020 peaks beyond the 124.00 mark in the short-term horizon. If the buying impetus picks up pace, then the focus should shift to the May 2019 high at 125.23 (May 1).

As long as the 200-day SMA at 119.93 holds the downside, the outlook on the cross is seen as positive.

EUR/JPY daily chart