EUR/JPY Price Analysis: Further south comes in 127.02

• EUR/JPY struggles for direction around 128.00.
• A deeper pullback could extend to the 127.00 region.

EUR/JPY remains well under pressure around recent lows in the 128.00 neighbourhood on Friday.

The selling pressure has accelerated after the cross broke below the 200-day SMA (129.10) as well as the key 2021 line around 129.15 at the end of last week. In the current context, further losses appear well in the pipeline.

A breach of recent lows near 128.00 should pave the way for a probable move to the next support near 127.00, where sits a Fibo level (of the January-June rally).

If the breakdown of the 200-day SMA at 129.04 becomes sustainable, then the outlook for the cross is expected to shift to negative.

EUR/JPY daily chart