EUR/JPY Price Analysis: Extra decline could extend to 127.50

• EUR/JPY breaches 128.00 to record new 2022 lows.
• Further down now comes the December 2021 low near 127.50.

EUR/JPY adds to Wednesday’s retracement and drops sharply below the 128.00 mark on Thursday.

Further losses in EUR/JPY now faces the next support of note at the December 2021 low in the mid-127.00s (December 20), while a breach of this level should target the February 2021 low at 126.10 (February 4).

Further downside in the cross is likely as long as it remains capped by the 2-month line, today near 128.90. On the longer term, the outlook for the cross is seen as negative while below the 200-day SMA, today at 130.36.

EUR./JPY daily chart