EUR/JPY manages to extend the weekly recovery further north of the 128.00 yardstick, although the bull run faltered just ahead of 128.80 on Wednesday.

In light of the current price action, the cross could move into a consolidative phase in the short-term horizon. That said, initial hurdle is located at the 10-day SMA at 128.85 ahead of the weekly top around 129.60 (November 24). If the latter is cleared, then the downside pressure is expected to alleviate somewhat.

Looking at the broader picture, the outlook for the cross is expected to remain negative while below the 200-day SMA, today at 130.54.