- EUR / JPY encountered some resistance above 129.00.
- The breakout of the 200 day moving average should ease the selling pressure.
The EUR / JPY rally has hit a stiff hurdle so far just above 129.00, where the critical 200-day SMA is also located.
The cross now loses some momentum and is exposed to a resumption of the bearish leg if it cannot overcome the recent peaks around 129.00, ideally in the very short term. Above this area, the selling pressure would be mitigated, allowing additional gains on the short-term horizon.
That said, there is a small hurdle around 129.30, where the 20-day SMA and the 2021 line (from the January low) converge ahead of a Fibonacci level at 129.60.
Above the 200-day SMA (129.09), the outlook for the crossover is considered constructive.
EUR / JPY day chart
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