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While the cross remains supported by the 129.05 level, a re-visit of the 200-day SMA at 131.76 should stay on the cards, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

EUR/JPY has seen initial rejection at 131.15 but remains under pinned by the 55 day ma and the top of the daily cloud at 129.05. Provided the market holds over 129.05, we will look for recovery back to the 200 day ma at 131.76. The market has recently broken above the daily cloud for the first time since February and we look for the 200 day ma and recent high at 131.76/98 to be eroded shortly. We look for further gains to the 133.48 April peak”.

“The market stays bid above the 129.26/05 55 day ma and cloud and only below here would negate the topside and re-target the 124.62 May low”.