EUR/JPY Price Analysis: Upside still capped by 130.20

• EUR/JPY trades without clear direction around 130.00.
• The 130.20 region still caps occasional bullish attempts.

EUR/JPY manages to reclaim the 130.00 neighbourhood following the earlier drop to the 129.70/65 band on Monday.

Further rangebound appears in the pipeline, at least in the very near term. That said, the cross needs to surpass recent peaks around 130.20 to allow for extra recovery. Further north comes in the weekly highs in the 131.00 zone (July 13). The proximity of the 100-day SMA (131.18) reinforces this hurdle. In addition, beyond this area the downside pressure is expected to subside.

In the meantime, while above the 200-day SMA at 128.47, the outlook for EUR/JPY is expected to remain constructive.

EUR/JPY daily chart