Follow up on EUR/JPY

Yesterday we saw that the EUR/JPY had reached the 55 day exponential moving average, purple line, which is currently around the 120.81 level. We noticed that the candle that formed on the 55 day EMA is a doji or a spinning top, indicating that the drop on the pair may have lost its strength. On the following candle we see that the pair bounces to the upside and reaches the 122.00 level, which is currently acting as resistance. If the price continues rallying, then the pair will enter the congestion area between the 122.00 and the 124.00 levels. In case the pair comes back down, then the same 55 day EMA may act as support. But below the 55 day EMA, we can see that the 120.00 level or the 200 day EMA, blue line, could also act as support.