EUR/JPY Price Analysis: Initial support emerged near 128.00

• EUR/JPY reverses the recent weakness and rebounds to 128.50.
• Key contention area remains around the 128.00 zone.

EUR/JPY reverses five straight days with losses and manages to retake the mid-128.00s on the back of the better mood around the single currency.

Further upside faces interim hurdle at the 10-day SMA at 129.29 ahead of a Fibo level near 129.40. Extra gains are expected to challenge the 200-day SMA at 129.57. Above the latter, the downside pressure is seen mitigating somewhat.

While below the 200-day SMA the outlook for the cross should remain bearish for the time being.

EUR/JPY daily chart