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  • EUR/JPY dropped and rebounded from the mid-116.00s.
  • Further upside could see the 200-day SMA near 120 re-tested.

After printing multi-week lows near 116.50 last week, EUR/JPY managed to regain some composure and it has now reclaimed the 118.00 mark and beyond helped by the selling mood surrounding the Japanese yen.

Looking at the broader picture, the cross is expected to keep the broad rangebound trading unchanged for the time being, likely between 116.00 and 121.50.

A breakout February tops in the mid-121.00s is needed in order to alleviate the downside pressure and shift the focus to a potential test of yearly highs in the boundaries of 123.00 the figure (January 16th).

EUR/JPY daily chart