EUR/JPY Price Analysis: Upside capped around 130.70 so far

• EUR/JPY recovers part of the ground lost last Friday.
• The resumption of the upside targets 131.00 and above.

The sharp rally in EUR/JPY seems to have faltered in the 130.70/75 band on Friday, area coincident with a Fibo level (of the January-June rally).

The cross creeps higher on Monday and regains some composure, managing well to keep business above the psychological 130.00 hurdle for the time being. Interim resistance now emerges at recent tops past 130.70. A surpass of this area should put the 131.00 zone back on the radar. In this zone converges the July 13 top and the 100-day SMA.

Above the 200-day SMA (129.38), the outlook for EUR/JPY is seen as constructive.

EUR/JPY daily chart