The cross was down 0.55% on Tuesday, hovering at around 122.00during the Frankfurt session.
The support for the near-term could be at around 121.00, where the broken, bearish trend line is converged with previous swing highs. That is the crucial level to watch, and the price needs to stay above to remain in the medium-term uptrend.
If the price drops below this level, we could see further selling, targeting the 200 EMA near 119.50.
Alternatively, the first significant resistance is at pervious highs near 122.70, and the euro needs to clear this level for further bullish pressure. The next target for bulls will then be at the current cycle highs of 124.30.
Sentiment seems positive as long as equities are rising, which could benefit JPY crosses. Volatility has also improved recently in the FX market, which can lure back some traders.
