EUR/JPY extends recovery, still unable to hold above 120.00

The euro rose to fresh highs against the US dollar and trimmed losses versus the Japanese yen during the American session. EUR/JPY bounce off lows and attempted to make a recovery. After hitting a fresh daily high at 120.32, it pulled back below 120.00 as stocks in Wall Street turned again to the downside.

Still under pressure

Currently EUR/JPY trades around 119.65/70, 50 pips below Friday's closing price. Earlier it bottomed at 118.98, the lowest level since February 2013 and then rebounded. But the pair remains under pressure, moving with a bearish bias in a long-term descendant channel.

The medium-term perspective could change if it climbs above 124.50, on top of a downtrend line and the 20-day moving average.

The 119.00 zone has become the key support. The mentioned area also capped the decline during February and April 2013. A break lower would favor a bearish acceleration.