FX July 30, 2020 / 06:28 am UTC

Monthly View: Chart EUR/JPY - Rally Checked at the 124.00 Level; Expect Further Strength Later

By PakLai Ng

The strong rally from June's low has retraced almost all the pullback from the June high at 124.43. While the 124.00 level has contained the June/July rally attempt, the bullish break of the down-channel from February 2018's high suggests a bottom is now in place at 114.43. Clearance of this mark will cause a stronger recovery to further retrace the 2018/2020 decline and target the 126.00 level and 128.70, which are the 50% and 61.8% Fibonacci levels, respectively.

The downside now has support at the 122.00 level and then the 120.00 level after that. There would need to be a break of the latter, as well as 119.31, to weaken sentiment and cause bears to reassert.

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