EUR/JPY Price Analysis: The mid-131.00s still offers initial contention

• EUR/JPY adds to Wednesday’s pullback and retests 131.60/50.
• Next on the downside comes the 20-day SMA above 131.00.

Sellers remain in control and keep EUR/JPY depressed near the 131.50 on Thursday.

The weekly pullback has met initial contention at the Fibo level near 131.50, which is expected to hold the downside for the time being. Further south from here emerges the 20-day SMA, today just above the 131.00 yardstick. This area is also reinforced by another Fibo level around 130.90.

In the broader scenario, while above the 200-day SMA at 130.17, the outlook for the cross is expected to remain constructive.

EUR/JPY daily chart