FXStreet (MUmbai) - The EUR/JPY cross took a breather in the European session and retreated from eight-day highs mainly on the back of a relatively stronger yen, as the sell-off in the oil prices and the global equities extend. EUR/JPY supported at hourly 100-SMA at 127.82 Currently, the EUR/JPY pair trades 0.16% lower at 128.51, having found solid support near hourly 50-SMA placed at 128.33. The cross in the EUR/JPY trims losses and regains 128.50 levels as the shared currency jumped back on the bids against the greenback, with EUR/USD just a whisker short of daily highs at 1.0882. While the upside in the cross runs into offers near 128.65 region on the back of persistent weakness in the USD/JPY pair as continued decline in the oil prices dampen investors’ sentiment. Meanwhile, the FOMC decision is expected emerge the main markets driver in the session ahead and could help set a clear direction in the USD, which may eventually impact EUR/JPY. EUR/JPY Technical Levels To the upside, the next resistance lies at 128.76/78 (Jan 26 & 14 High), above which it could extend gains to 128.97/129 (daily R1/ round number). To the downside, the cross finds immediate support at 128.33/26 (1h 50-SMA / daily low), below that 128.09 (1h 100-SMA/ 10-DMA), could act as a major support. For more information, read our latest forex news.