EUR/JPY Price Analysis: Next on the downside appears 127.80

• EUR/JPY remains on the defensive below the 129.00 mark.
• Further decline could see the 127.80 area retested in the near-term.

EUR/JPY adds to Tuesday’s losses and accelerates the downside below the 129.00 support on Wednesday.

The upside momentum now looks dented and a deeper pullback in the cross could re-visit the 127.75/80 band, where coincide the 50-day SMA and the short-term support line (off the November’s low).

A break below the latter should alleviate the upside pressure and allow for the continuation of the downtrend, at least in the near-term view.

In the meantime, while above the 200-day SMA at 125.04 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart