EUR/JPY Price Analysis: Upside looks capped around 127.50

• EUR/JPY returns to the sub-127.00 area on Monday.
• Recent tops in the mid-127.00s offer initial resistance.

EUR/JPY extends the rejection from recent peaks in the 127.50 region and slips back to the area below 127.00 the figure at the beginning of the week.

If the selling impulse accelerates, then the next region of contention emerges in the 126.00 neighbourhood, the lower bound of the recent multi-week consolidative theme.

Looking at the broader picture, while above the 200-day SMA at 122.52 the outlook for the cross should remain constructive.

EUR/JPY daily chart