EUR/JPY Price Analysis: A drop to 124.00 stays in the pipeline

• EUR/JPY comes under pressure and slips back below 125.00.
• The weekly lows in the 124.00 area could be the next support of note.

EUR/JPY’s rally managed to hit fresh tops near 125.60 on Thursday. The move lacked follow through, however, encouraging the ongoing correction lower to sub-125.00 levels.

In spite of the knee-jerk, extra gains remain well on the cards and underpinned by the generalized improvement in the risk complex. Against this, the next key hurdle emerges at the mid-127.00s, where sits the March 2019 high.

If sellers remain in control in the short-term, then EUR/JPY risks a drop to lows around the 124.00 mark (August 3).

EUR/JPY weekly chart