• EUR/JPY reverses two daily pullbacks in a row and approaches 131.00.
• The 100-day SMA around 130.00 offers initial contention.

EUR/JPY rebounds from Friday’s lows near 129.80 and looks to regain the 131.00 neighbourhood on Monday.

As long as the cross remains capped by the YTD high at 131.60 (January 5), further consolidation or a move lower should remain in the pipeline. On the latter, the 130.00 area, where the 100-day SMA sits, should hold the initial test ahead of the so far 2022 low at 129.77 (January 14).

While above the 200-day SMA, today at 130.53, the outlook for EUR/JPY should remain constructive.

EUR/JPY daily chart