- EUR/JPY reverses recent weakness and bounces off 130.00.
- If it continues above the two-month line, the bullish bias will remain.
EUR/JPY leaves behind the negative performance seen in the second half of last week and manages to regain some shine on Monday.
The cross broke below the key 200-day SMA (130.41) and in doing so has opened the door for further losses in the very short term. The 55-day moving average around 129.90 comes in as temporary support ahead of the two-month line today near 128.80.
As long as it remains above this line, further rallies on the cross should remain on the table in the very short term. In the longer term, the outlook for EUR/JPY is seen as negative as long as it trades below its 200-day simple moving average.
EUR/JPY day chart
Source: Fx Street
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