EUR/JPY Price Analysis: Next on the downside comes 128.50

• EUR/JPY drops further south of the 129.00 level.
• Next support now emerges in the mid-128.00s.

EUR/JPY depreciates further and quickly leaves behind the 129.00 mark on Thursday.

Further decline remains well on the cards, accelerated after the cross broke below the critical 200-day SMA (129.54) earlier in the week. That said, there is an interim support at July’s lows in the 128.50 region (August 20) ahead of monthly low at 127.93 (August 19).

The sustainable break below the 200-day SMA should shift the outlook for EUR/JPY to bearish (from constructive).

EUR/JPY daily chart