EUR/JPY Price Analysis: Initial support emerges around 129.50

• EUR/JPY regains the upside following Monday’s pullback.
• The loss of 129.50 could spark a drop to the 200-day SMA.

EUR/JPY trades with small gains in the upper-129.00s after re-testing the support zone around 129.60/50.

If the cross breaches this area of contention it could open the door to a potential move to the 200-day SMA, today at 128.65 ahead of the July’s low at 128.59 (July 20). On the other hand, the 130.70 zone continues to cap occasional bullish attempts.

In the meantime, while above the 200-day SMA at 128.65, the outlook for EUR/JPY is expected to remain constructive.

EUR/JPY daily chart