EUR/JPY Price Analysis: Door open to extra pullbacks

• EUR/JPY resumes the downside and tests 128.30.
• Next on the downside now comes the 127.00 zone.

EUR/JPY resumes the downside and drops to multi-month lows in the 128.30 area on Thursday.

The selling pressure has accelerated after the cross broke below the 200-day SMA (129.03) 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 table.

The loss of the 128.30 region, 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