EUR/JPY Price Analysis: Mildly offered inside three-week-old falling channel

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EUR/JPY fades bounce off 13-month low, sidelined of late.
Sluggish Momentum, bearish chart pattern keep sellers hopeful.
50-SMA, 200-SMA adds to the upside filters, 2020’s peak also challenge bears.

EUR/JPY reverses the corrective pullback from February 2021 lows, marked the previous day, inside a short-term descending trend channel formation. That said, the quote remains pressured around 128.30 by the press time of Thursday’s Asian session.

As the Momentum indicator portrays sluggish moves in favor of the previous rebound with the below zero figures, the EUR/JPY is likely to remain downbeat.

That said, the quote’s latest weakness eyes Wednesday’s low, also the lowest in 13 months, around 127.30.

However, tops marked during the year 2020 and the stated channel’s support line appears a tough nut to crack for the EUR/JPY bears around 127.00.

Alternatively, recovery moves may aim for the 129.00 threshold but the 50-SMA and upper line of the stated channel, near 129.30-45, will question EUR/JPY bulls afterward.

Also likely to challenge the pair’s upside is the 200-SMA level of 130.00, a break of which will propel an upside momentum targeting February’s peak of 133.15.