EUR/JPY Price Analysis: Downside has further legs to go

• EUR/JPY accelerates losses and flirts with the 128.50 area.
• Further decline should not be ruled out for the time being.

EUR/JPY intensifies the daily pullback and re-visits the mid-128.00s for the first time since mid-December.

Price action in the cross now seems to favour extra decline in the short-term horizon, particularly after EUR/JPY remains unable to retest/surpass the YTD peaks in the 131.50/60 region (January 5). That said, the next support of relevance now emerges at the December low at 127.83 (December 3).

While below the 200-day SMA, today at 130.52, the outlook for the cross is expected to remain negative.

EUR/JPY daily chart