EUR/JPY Price Analysis: Initial support emerged around 129.40

• EUR/JPY drops and rebounds from fresh lows near 129.40.
• Further south comes the October low around 128.30.

EUR/JPY’s sharp decline appears to have met some contention near 129.40, or fresh 6-week lows on Wednesday.

A deeper pullback remains well on the cards for the time being. That said, if the 129.40 area (Fibo level of the October rally) is cleared, then there are no significant stops until October’s low at 128.33 (October 6).

Below the 200-day SMA, today at 130.49, the outlook for the cross is seen as negative.

EUR/JPY daily chart