EUR/JPY Price Analysis: Next on the downside comes in 128.30

• EUR/JPY leaves behind part of the recent weakness.
• Immediate support is located near 128.30, March lows.

EUR/JPY manages to rebound from recent lows in the mid-128.00s, although it still trades below the critical 200-day SMA.

The selling pressure has accelerated after the cross broke below the 200-day SMA (129.10) as well as the key 2021 line around 129.15 at the end of last week. In the current context, further losses appear well in the pipeline.

The loss of the 128.30 area, where also sits the March lows, should pave the way for a probable move to another Fibo level (of the January-June rally) in the 127.00 neighbourhood.

If the breakdown of the 200-day SMA becomes sustainable, then the outlook for the cross is expected to shift to negative.

EUR/JPY daily chart