• EUR/JPY regains some ground lost following Wednesday’s drop.
• Further downside should meet contention near 132.60.

EUR/JPY advances modestly after Wednesday’s strong drop to the 134.00 neighbourhood.

Price action around the cross remains inconclusive and further decline should not be ruled out so far. That said, the May low at 132.65 (May 12) is expected to hold occasional bearish attempts in the short-term horizon prior to the temporary 100-day SMA, today at 132.50.

In the meantime, while above the 200-day SMA at 131.13, the outlook for the cross is expected to remain constructive.

EUR/JPY daily chart