Last week's leg higher brought the cross back to 2020 highs, located near 126.70/127.00. It seems bulls are lacking the power or willingness to push the euro above these highs. At least so far.
The intraday support seems to be in the 125.70 region, where this week's lows are located. If the price drops below that level, the short-term outlook could change to bearish, targeting 125.00.
Alternatively, if the euro starts rallying again, it needs to clear out the big selling zone of 126.70/127.00. The following rally could bring the cross to 128.00, while from the medium-term perspective, the psychological resistance of 130 might be reached as well.
The long-term view remains positive as the USDJPY pair has been moving sideways for many weeks now (one of the most boring and least volatile major pairs), and the EURUSD has been advancing amid the USD weakness. Therefore, the EURJPY cross could remain supported.
