EUR/JPY Price Analysis: Scope for extra pullbacks

• EUR/JPY loses ground for the third session in a row.
• Weekly lows in the 125.60 area emerges as the next support.

EUR/JPY extends the pessimism seen in the first half of the week and already trades at shouting distance from the key support at the 126.00 neighbourhood, where also coincides the 21-day SMA.

The renewed downside pressure is expected to meet initial and minor support at the 55-day SMA at 125.81 and carries the potential to drag EUR/JPY to last week’s lows near 125.60 (January 27) in the short-term horizon.

Looking at the broader picture, while above the 200-day SMA at 123.27 the outlook for the cross should remain constructive.

EUR/JPY daily chart