EUR/JPY Price Analysis: Initial contention emerged around 128.00

• EUR/JPY’s recovery faltered around the mid-129.00s so far.
• Another drop to recent lows near 128.00 cannot be ruled out.

EUR/JPY comes under some selling pressure following another failed attempt to advance further north of recent peaks in the 129.50 area.

The resumption of the downside should not be ruled out yet and therefore another visit to the monthly low at 127.97 (November 19) remains well on the cards for the time being.

Looking at the broader picture, the outlook for the cross is expected to remain negative while below the 200-day SMA, today at 130.53.

EUR/JPY daily chart