EUR/JPY Price Analysis: Still room for a drop to 128.00

• EUR/JPY regains some composure albeit still below 129.00.
• Further decline could see the 128.00 area retested near term.

EUR/JPY posts modest gains above 128.00 on Thursday, although another test/surpass of the 129.00 mark still remains elusive for the time being.

EUR/JPY manages to reverse Wednesday’s sharp drop to the 128.30 area and opens the door to some recovery in the short-term. Against that, there are minor hurdles at the 20- and 10-day SMAs at 129.15 and 129.28, respectively. Further up comes the so far monthly highs in the mid-129.00s (October 6), area coincident with the 55-day SMA and a Fibo level (of the June-August drop).

The near-term outlook for the cross remains bearish while below the critical 200-day SMA, today at 129.74.

EUR/JPY daily chart