EUR/JPY Price Analysis: Rejection from 125.00 triggers corrective downside

• EUR/JPY’s rebound fails ahead of the 200-week SMA near 125.20.
• A surpass of this level should put a visit to 126.50 back on the radar.

Following the recent move to and failure in the 125.00 neighbourhood, EUR/JPY as sparked a corrective downside to the vicinity of the 124.00 mark so far this week.

If bulls regain the upper hand, then the cross needs to surpass the 125.00 level – ideally in the near-term - to allow for the continuation of the recovery to the immediate hurdle at the 200-week SMA near 125.20.

Further north is located the late September peak in the mid-126.00s.

Above the 200-day SMA, today at 121.02, the outlook on the cross is expected to remain constructive.

EUR/JPY daily chart