FxWirePro: EUR/JPY consolidates previous session's gains, holds above 124 handle

EUR/JPY chart - Trading View 

EUR/JPY is consolidating previous session's spike, edges lower from session highs at 124.22 to trade around 124 handle at 07:45 GMT.

EUR/JPY hit highest since June 2020 (124.29), buoyed by the European Union's decision to approve the highly-anticipated EUR 750 billion recovery fund. 

The fund now needs to be ratified by the EU parliament and the single currency may weaken ahead of the EU parliament's ratification.

The pair has been on an upward spiral since the beginning of the month and overbought oscillators may see some weakness. 

Major and minor trend are bullish as evidenced by the GMMA indicator. Pullbacks likely to be shallow. 

Price action has broken above weekly cloud and 110W EMA. Technical indicators for the pair show scope for further upside. Bulls eye 200W MA at 124.72.

On the data front, the focus shall be on German and EZ PMIs (due Friday) along with ECB's De Guindos Speech due later in the day.

Major Support - 122.31  (110W EMA)

Major Resistance - 124.72 (200W MA)