EUR/JPY Technical Analysis: Drops and rebounds from yearly lows in the mid-116.00s

• EUR/JPY tumbles to fresh 2019 lows in the 116.50 region just to rebound afterwards and return to levels above the 117.00 handle.
• The continuation of the squeeze higher faces the initial hurdle at the 10-day SMA just above 118.00 the figure. Immediately above lies last week’s tops at 118.47 (August 19) and the 21-day SMA at 118.67.
• Looking at the broader picture, while below the 55-day SMA at 120.53 and the multi-month resistance line at 120.77, the bearish view is expected to remain unchanged.

EUR/JPY daily chart