EUR/JPY Technical Analysis: Potential for extra downside in the near term

• EUR/JPY dropped and tested fresh lows in the 122.00 neighbourhood on Wednesday following renewed weakness around the European currency and a pick up in risk-off sentiment.
• As long as the multi-month resistance line at 125.92 caps the upside, the outlook on the cross should remain negative and a visit to lower levels is expected to remain on the table for the time being.
• Occasional bullish attempts should meet interim resistance at the 10-day SMA at 123.24 ahead of the 21-day SMA at 124.21.

EUR/JPY daily chart