EUR/JPY Price Analysis: A deeper pullback could re-test 124.40

• EUR/JPY keeps correcting lower following recent 2020 highs.
• Immediately to the downside emerges the 124.40 region.

EUR/JPY seems to be consolidating in the mid-125.00s so far, coming under some selling pressure after last week’s new 2020 highs just above 127.00 the figure.

The current downside should be deemed as corrective only and carries the potential to re-visit the 124.40 zone (low August 21) ahead of the potential resumption of the bullish trend.

The constructive view around EUR/JPY is predicted to remain unchanged while above the 200-day SMA at 120.65.

EUR/JPY daily chart