EUR/JPY Technical Analysis: Buyers aim 124.70/80 on Spanish election results, bounce from 16-week old support-line

• Sustained reversal from an ascending support-line stretched since early January joins upbeat election results from Spain.
• 124.70/80 can limit immediate upside ahead of 50-day and 100-day SMA confluence.

EUR/JPY is on the rounds near 124.50 during early Monday. The pair holds its recovery from an upward sloping trend-line stretched since January 04 after the general election results from Spain confirmed Pedro Sanchez’s ruling socialist party PSOE (Partido Socialista Obrero Español) as the winner.

Considering sustained U-turn from an important support-line, the quote is likely to confront 124.70/80 resistance-area comprising lows marked on April 10 and 24 together with the latest highs.

However, the break of 124.80 is less likely to be confirmed as a buy signal for the pair due to 50-day and 100-day simple moving average (SMA) confluence near 125.55/60, a break of which can propel prices toward 126.00 and 126.70 numbers to the north.

Meanwhile, pair’s dip beneath 124.00 support-line highlights March month lows near 123.60 ahead of diverting sellers’ attention to 123.40 and 122.60/55 rest-points.

In a case where Bears dominate past-122.55, June 2017 lows near 122.40 and 122.00 could flash on their radars to target.

EUR/JPY daily chart

Trend: Positive