• EUR/JPY leaves behind Wednesday’s negative session.
• Sellers could still drag the cross to the 128.00 area.

EUR/JPY regains the upside traction and returns to the positive territory near 129.50 on Thursday.

The resumption of the downside should not be ruled out yet and therefore another visit to the monthly low at 127.97 (November 19) remains well on the cards for the time being. A move further south should see the August and September low around 127.93 retested.

Looking at the broader picture, the outlook for the cross is expected to remain negative while below the 200-day SMA, today at 130.54.

EUR/JPY daily chart