• EUR/JPY manages to stage a decent rebound and retests 129.00.
• Further consolidation seems well in place for the time being.

EUR/JPY reverses two daily pullbacks in a row and briefly surpasses the 129.00 hurdle at the beginning of the week.

In light of the recent price action, the cross seems to have moved into a consolidative phase, with support emerging around 128.20 so far. On the upside, the temporary hurdle at the 55-day SMA at 129.27 keeps capping the upside for the time being. The surpass of the latter could alleviate the downside pressure and allow for a probable move to the more relevant 200-day SMA.

While below the 200-day SMA AT 130.47, the outlook for the cross is expected to remain negative.

EUR/JPY daily chart