- EUR/JPY fades recent strength and falls below 131.00.
- The 200-day SMA near 130.50 supports the drop for now.
EUR/JPY fades the move higher near the 132.00 level on Wednesday and falls back below the 131.00 level during the European session on Thursday.
Despite the pullback, the move higher in EU/JPY should remain on the table as long as it remains above the 2-month support line today near 128.80. That said, the resumption of the upside bias should retrace to the weekly high at 131.90 (Feb 16) before targeting the 2022 high at 133.15 (Feb 10). If the buying impulse picks up a further pace then the focus should turn to the Oct 2021 high at 133.48 (Oct 20).
In the longer term, the outlook for the cross is seen as constructive as long as it moves above the 200-day SMA today at 130.44.
EUR/JPY daily chart
EUR/JPY technical levels
Source: Fx Street
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