EUR/JPY Price Analysis: Initial contention emerges around 130.00

• EUR/JPY adds to recent losses and re-visits 130.00.
• The 55-day SMA reinforces this area of contention.

EUR/JPY extends the corrective downside for the second session in a row and sinks to the 130.00 neighbourhood on Thursday.

The cross thus breaks below the previous multi-session consolidative theme and meets initial contention around the psychological 130.00 yardstick. This support is now reinforced by the 55-day SMA, just pips below 130.00. A deeper pullback carries the potential to expose another visit to the mid-129.00s, where coincides the 200-, THE 20-day SMAs and a Fibo level (of the June-August drop).

Above the 200-day SMA (129.46), the outlook for EUR/JPY is expected to remain constructive.

EUR/JPY daily chart