• EUR/JPY fades the recent strength and drops below 131.00.
• The 200-day SMA near 130.50 supports the downside so far.

EUR/JPY fades Wednesday’s uptick to the vicinity of 132.00 and slips back to the sub-131.00 region on Thursday.

Despite the knee-jerk, further upside in the cross should remain on the table while above the 2-month support line, today near 128.80. That said, the resumption of the upside bias should retarget the weekly high at 131.90 (February 16) ahead of the 2022 peak at 133.15 (February 10). If the buying impulse gathers extra pace, then the focus of attention should gyrate to the October 2021 high at 133.48 (October 20).

On the longer term, the outlook for the cross is seen as constructive as long as it trades above the 200-day SMA at 130.44.

EUR/JPY daily chart