EUR/JPY Price Analysis: Downside alleviated above 131.00

• EUR/JPY adds to Tuesday’s recovery and targets 130.00.
• The next hurdle of note comes in at the 131.00 area.

After bottoming out in the mid-128.00s in the first half of the week, EUR/JPY seems to have regained some composure and now retargets the psychological 130.00 the figure, up for the second day in a row.

The continuation of the recovery should track further improvement in the risk complex and could extend to the 131.00 neighbourhood, where coincides weekly highs and the 100-day SMA. The surpass of this area should mitigate the downside pressure.

In the meantime, a move to the 200-day SMA near 128.40 should also be negated if the cross manages to clear 131.00, ideally in the very short term.

EUR/JPY daily chart