EUR/JPY Price Analysis: A move below 130.00 is not ruled out

• EUR/JPY’s rebound run out of steam near 131.60.
• So far, the next support comes in at the 130.00 area.

EUR/JPY failed to push the upside momentum further north of the 131.60 zone on turnaround Tuesday.

The inability of the cross to resume the recovery in the very near term could prompt sellers to return to the market. That said, there is a minor support at the 100-day SMA near 130.50 ahead of the psychological 130.00 neighbourhood.

The loss of the latter could likely accelerate losses to the 129.60 area, or April lows.

In the broader picture, while above the 200-day SMA at 127.64 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart