EUR/JPY Price Analysis: Downside pressure mitigated above 132.70

• EUR/JPY rebounds from lows near 129.50 on Monday.
• The selling pressure is expected to alleviate beyond 132.70.

The downside momentum in EUR/JPY seems to have met initial contention in the 129.50 region last week. This support area coincides with the April lows.

The continuation of the recovery targets some minor hurdles at the 100-day SMA and the 20-day SMA near 131.10 and the so far July peaks around 132.40 (July 1). The latter is also reinforced by the proximity of the 50-day SMA (132.33).

The ongoing bearish stance is expected to lose traction once weekly highs around 132.70 (June 23) are cleared.

The outlook for the cross is seen as constructive while it trades above the 200-day SMA, today at 128.18.

EUR/JPY daily chart