Risk-on sentiment helps EUR/JPY to reclaim 124.00 handle

The bulls firmed their grip on the EUR/JPY pair, lifting the pair back above 124.00 handle as the USD/JPY pair stops got triggered above 109.00 level.

Along with today's up-move, the pair has now erased all of its Friday's declines and is now within striking distance of testing its recent closing highs resistance near 124.25-30 area.

At the time of writing, the pair is up 0.45% and is comfortably holding above 20-day SMA. From current levels, the pair now seems poised to advance further in the near-term.

Technical levels to watch

On a sustained trade above 124.00 level, the pair seems to extend its upward trajectory towards 50-day SMA resistance near 124.65-70 region, also marking two-week high touched in the previous week. Momentum above 50-day SMA is likely to get extended further towards 125.25-30 horizontal resistance.

Meanwhile on the downside, bulls would now try and defend 20-day SMA support near 123.65-60 area, which if broken is likely to find support near 123.10-123.00 round figure mark.