EUR/JPY trades mildly higher at 125.50, continuing the three-day rally.
Monthly falling trend line tempts buyers but bearish MACD raises questions over further gains.
124.45/40 is in focus for the bears- the break of immediate EMA support.
EUR/JPY pulls back from 125.75 (daily high) to 125.67 in early European trade, still holding + 0.18% gains and protected by the 21-day EMA
Given the resilience seen above the key EMA, bulls could target 126.16, the resistance line of a short-term descending triangle.
A bearish MACD could bring some resistance prior to the monthly high around 127.10.
A downside break through the 21-day EMA level of 125.44 could bring 124.70 in as immediate support before returning to the triangle’s support, around 124.40.
If bears jump in at 124.40, the high in late July of 124.30 needs to be broken down prior to targeting 123.00.