EUR/JPY Price Analysis: Mildly bid above 121.00 following pullback from weekly support line

• EUR/JPY keeps recovery moves from 100-HMA inside a bullish chart pattern.
• Rising wedge on hourly chart, sustained trading beyond one-week-old support line keep buyers hopeful.
• A strong selling pressure becomes necessary to break the 120.00 threshold.

EUR/JPY gains 0.15% while rising to 121.40 during the early Wednesday. The pair recently bounces off 100-HMA and aims to confirm a short-term bullish chart formation on the hourly chart. Other than the 100-HMA an upward sloping trend line from July 01 also favors the buyers.

As a result, the rising wedge’s resistance around 121.60 gains market attention, a break of which could swiftly challenge the mid-June top near 122.15. Though, January month high close to 122.90 and June 05 low surrounding 123.55 hold the gate for the pair’s further upside.

In a case where the bulls dominate past-123.55, 124.00 and June month’s peak level of 124.43 will be under attack.

Meanwhile, the 100-day SMA and the bullish pattern’s support line together constitute 121.20 as the strong immediate support. Additionally, the one-week-old rising trend line around 121.15 could challenge the sellers.

If at all the bears enter below 121.15, 121.00 and 61.8% Fibonacci retracement of the pair’s June 26 to July 06 upside, around 120.60 will offer intermediate halt before highlighting 120.00 psychological magnet.

EUR/JPY hourly chart

Trend: Further recovery expected