EUR/JPY Price Analysis: Upside seen as temporary only

• EUR/JPY bounces off recent lows near 124.40.
• The resurgence of risk appetite favours the daily uptick.

EUR/JPY picks up some renewed upside traction and manages to trespass the 126.00 barrier on turnaround Tuesday.

There are no resistance levels of note in case the recovery gathers extra steam, with the temporary 10-day SMA waiting near 127.90 ahead of the 20-day SMA at 129.85. On the other hand, the breach of the 2022 at 124.31 (March 7) should expose a drop to the 122.84 level (November 19 low) prior to the October 2020 low at 121.61 (October 30).

While below the 200-day SMA, today at 130.12, the outlook for the cross is expected to remain negative.

EUR/JPY daily chart