EUR/JPY rose sharply on Tuesday, rising more than a hundred pips and recovering further after falling on Monday to the lowest level in three years at 121.69. The pair started today trading at 123.10 and rose modestly during the Asian session but then on European hours broke above 123.80 - 124.00, resistance area that limited the upside for several days and climbed to 124.43, reaching the strongest level since April 7. Near the end of the day it was trading at 124.10/15, up 0.85% for the day, having the best performance in a month boosted by a decline of the yen across the board. EUR/JPY technical outlook “Still holding above the 124.00 level, the pair is consolidating around the 38.2% retracement of the latest daily slump between 128.21 and 121.70, at 124.18, suggesting this latest upward corrective move can be merely corrective”, said Valeria Bednarik, Chief Analyst at FXStreet. In the short term, the pair is headed lower, according to Bednarik, as in the 1 hour chart, the technical indicators are retreating from extreme overbought territory, although the 200-SMA converges with the 23.6% retracement of the same rally at 123.25, indicating the price needs to extend below this last to resume its bearish trend. For more information, read our latest forex news.