EUR/JPY Price Analysis: Initial support emerges at 126.00

• EUR/JPY bounces off recent lows near the 126.00 level.
• The upside remains capped by the YTD highs around 127.50.

EUR/JPY looks to regain some upside traction following recent weekly lows in the vicinity of the 126.00 level.

If the support in the 126.00 neighbourhood is cleared in the near-term, then the next interim level is at 125.70 (low December 16), or the lower bound of the recent multi-week consolidative theme. Further south comes in the 55-day SMA just above 125.00 the figure.

Looking at the broader picture, while above the 200-day SMA at 122.65 the outlook for the cross should remain constructive.

EUR/JPY daily chart