EUR/JPY Price Analysis: Rebound targets the 128.20 area

• EUR/JPY adds to the weekly bounce and retakes 127.00.
• Next on the upside emerges the 128.20 region in the near term.

EUR/JPY rebounds further and reclaims the area above the 127.00 barrier, or 3-day highs, on Wednesday.

In case the recovery picks up extra pace, the next resistance level turns up at the temporary 10-day SMA 127.57 prior to the 20-day SMA. If cleared, then the cross should re-focus on the January low at 128.24 (January 25). The surpass of the latter on a convincing fashion could well see the selling pressure mitigated and attempt a move to the 20-day SMA at 129.16 in the short-term horizon.

While below the 200-day SMA, today at 130.09, the outlook for the cross is expected to remain negative.

EUR/JPY daily chart