The EUR/JPY is struggling with a support zone

The EUR/JPY is one of those trading instruments that behaves in a predictable manner around technical levels, like the round number areas. On the daily chart of the EUR/JPY we can see that the pair has found a very good support zone at the 123.00 level since the beginning of May. To the upside, there is a good resistance zone around the 125.80 level. During today’s session the pair has broken momentarily below the 123.00 level, but once it touched the 55 day exponential moving average (purple line), it bounces from the level to the upside and forms what it appears to be a spinning top or doji pattern. The spinning top or doji is an indecision candlestick pattern that could signal a bullish reversal if the next candle closes to the upside. In case of a bullish bounce, the pair may try to go and visit the resistance area at the 125.80 zone. Below the 123.00 level, its next support could be the 122.00, followed by the 200 day exponential moving average (blue line) at the 120.85 level.