EUR/JPY Technical Analysis: Eroding the support line, but contention seen around the 129.00 handle

• EUR/JPY is extending the leg lower, advancing in just two out of the last nine sessions following 3-month peaks in the 132.00 neighbourhood (July 17).
• The cross pierced the critical short-term support line around 129.65 and has now opened the door for extra pullbacks.
• Strong support, however, should emerge in the top of the cloud near 129.00 the figure. As long as this area holds, a potential re-test of the 200-day SMA in the 131.80 area remains on the cards.

EUR/JPY daily chart

Daily high: 129.55

Daily low: 129.20

Support Levels

S1: 129.20

S2: 128.90

S3: 128.35

Resistance Levels

R1: 130.05

R2: 130.60

R3: 130.90