• EUR/JPY declines for the second consecutive session on Thursday.
• BOJ and ECB rate decisions will set the course of trade for the pair.
• Momentum oscillator signals caution before placing any aggressive bids.

EUR/JPY edges lower on Thursday in the early Asian session. The pair opened higher but fizzled out quickly to test the intraday low of 131.92. At the time of writing, EUR/JPY is trading at 131.99, down 0.08% for the day.

EUR/JPY daily chart

On the daily chart, the EUR/JPY cross-currency pair peaked at a four-month high near 133.50 on October  20,  before testing the low of 131.58 in the previous session. The pair breaks below the 23.6% Fibonacci retracement level, which extends from the low of 127.92 at 132.21.

If the price sustains below the intraday low it could re-test the low of 131.58 made a day earlier. The Moving Average Convergence (MACD) indicator holds above the overbought zone. Any downtick in the MACD would prompt EUR/JPY bears to meet the October 14 low of 131.26. Upon successful testing of the mentioned level, the spot might extend the losses toward the 50% Fibonacci retracement level at 130.75.

Alternatively, if the price reverses direction it could move back to the 132.50  horizontal resistance level. Next, the market participants would keep their eyes on the psychological 133.00 mark, followed by the four-month high of 133.48.

EUR/JPY additional levels