EUR/JPY Price Analysis: Recovery re-targets the 130.70 area

• EUR/JPY reverses the recent weakness to 129.70.
• Next on the upside comes monthly tops near 130.70.

EUR/JPY manages to return to the positive territory after two consecutive daily pullbacks and new lows in the 129.70 region.

The weekly leg lower in the cross met initial and interim contention around 129.70. The continuation of the rebound faces a minor hurdle at the Fibo level near 130.30 ahead of the more relevant monthly peaks in the 130.70 area. Further up lies the key barrier just past 131.00 the figure, where coincides the late-July top, the 100-day SMA and another Fibo retracement (of the June-August drop).

Above the 200-day SMA (129.47), the outlook for EUR/JPY is expected to remain constructive.

EUR/JPY daily chart