EUR/JPY tops near 124.40, pulls-back below 124.00 handle

As the Japanese currency, Yen, continues to slide across the board, the EUR/JPY pair extended its bullish momentum to 124.40 before retracing a bit to currently trade tad below 124.00 handle.

On Tuesday, Japan's finance minister Taro Aso reiterated his comments on Monday that the ministry was ready to step-in and weaken the nation's currency if moves were volatile enough to affect country's trade, economic and fiscal policies.

The pair has did manage to clear its immediate resistance near 124.00-124.15 area, marking 23.6% Fibonacci retracement level of 132.30-121.68 downfall. However, with hourly RSI already indicating near-term overbought conditions, the pair seems more likely to consolidate or witness a minor pull-back before resuming its near-term upward trajectory.

Technical levels to watch

Corrective move back below 124.00 handle should now find immediate support at 20-day SMA near 123.55-50 region. Weakness below this immediate support seems to get extended towards an important horizontal support near 123.20-15 horizontal zone. A decisive break back below 123.20-15 support might negate the bullish bias and drag the pair back below 122.00 handle, towards retesting its recent lows support near 121.70-65 area.

Meanwhile on the upside, sustained move above 124.00-15 resistance zone should assist the pair towards 50-day SMA resistance near 124.75-80 area. A follow through buying interest above 50-day SMA now seems to assist the pair to reverse last week's BoJ inaction led slide.