EUR/JPY Price Analysis: Scope for further gains above 128.00

• EUR/JPY fades Friday’s advance and breaches 129.00.
• The 128.00 neighbourhood is expected to hold the downside.

EUR/JPY starts the week on a soft footing although it manages to rebound from earlier daily lows in the 128.85/80 band.

In the meantime, as long as the cross keeps the trade above the 128.00 region - where coincide the 50-day SMA and the short-term support line (off the November’s low) - further gains are likely in the near-term.

A break below the latter should alleviate the upside pressure and allow for the continuation of the downtrend, at least in the short-term view.

In the meantime, while above the 200-day SMA at 125.17 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart