• EUR/JPY resumes the downside and retests 130.50.
• Upside remains limited by the 131.50/60 band so far.

EUR/JPY fades the initial move further north of the 131.00 mark and sparked a moderate pullback to the mid-130.00s soon afterwards on Tuesday.

Price action remains unconclusive around the cross for the time being, with gains capped by the so far YTD top at 131.60 (January 5) and the 130.00 neighbourhood offering some decent contention.

The inability of EUR/JPY to surpass the 131.50/60 band on a convincing fashion, ideally in the near term, should shift the bias towards the downside.

EUR/JPY daily chart