• EUR/JPY reversal from 122.11 extends to retest the trendline support from May lows, now ar 120.55
• A clear break below that line might cancel the upside trend and increase negative pressure on the pair.

The latest euro upside attempt, from 120.35, as remained capped below resistance area at 122.15/35, and the pair has pulled back again on Tuesday, to retest the upward trending support line from early May lows, now around 120.55.

A daily close below the mentioned trendline might cancel the overall upside trend, increasing negative pressure on the euro, and set the pair aiming to the 50% Fibonacci retracement of the May-June rally, at 119.45 before testing early May highs at 119.00.

On the upside, immediate resistance lies at 122.00 where the 23.6% retracement of the May – June rally has been capping the pair on Tuesday, with next potential resistance levels, at, 122.50/60 (Jun 9 high, Intra-day high) before June highs at 124.40.

EUR/JPY daily chart

EUR/JPY key levels to watch