EUR/JPY Price Analysis: Further retracement in the pipeline

• EUR/JPY reverses two daily advances in a row on Wednesday.
• There is room for a move to the 128.00 region near term.

EUR/JPY reverses the recent upside and drops to test new 3-day lows in the vicinity of 128.40 on Wednesday.

The continuation of the downside looks likely in the very near term, with the immediate solid target at the August/September lows in the 128.00 neighbourhood. Further south comes the interim level at 127.49 (monthly high January 7) and then 127.07 (high September 1 2020).

The near-term outlook for the cross remains bearish while below the critical 200-day SMA, today at 129.73.

EUR/JPY daily chart