EUR/JPY Price Analysis: Decent contention aligns near 128.50

• EUR/JPY reverses the recent advance and drops below 130.00.
• The mid-128.00s should hold the initial test if the downside picks up pace.

After a failed attempt to break above the 130.30 area, EUR/JPY comes under selling pressure and slips back below the 130.00 mark on turnaround Tuesday.

Further rangebound appears in the pipeline, although extra weakness should not be ruled out, at least in the very near term. Against this, the cross risks another test of recent lows in the 128.50 region. This key area of contention is also reinforced by a Fibo level (128.54) and the 200-day SMA (128.50).

In the meantime, while above the 200-day SMA at 128.50, the outlook for EUR/JPY is expected to remain constructive.

EUR/JPY daily chart