EUR/JPY Price Analysis: Solid support appears around 130.00

• EUR/JPY rebounds from earlier lows in the 130.00 zone.
• The 50-day SMA around 132.00 emerges as the next hurdle.

Following a drop to new 2-month lows in the 130.00 neighbourhood, EUR/JPY manages to regain some upside traction and looks to retake the 131.00 mark.

Further recovery is likely on the back of the oversold condition of the cross. That said, there is not much in terms of resistance levels until the 50-day SMA just above 132.00 the figure. This area coincides with the short-term resistance line. Above this region, the selling pressure is seen losing some traction.

In the broader picture, while above the 200-day SMA at 127.61 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart