• EUR/JPY adds to the ongoing weekly pullback on Wednesday.
• The mid-131.00s emerge as the next area of contention.

The selling bias around EUR/JPY remains well in place for the second session in a row on Wednesday.

The continuation of the downtrend is predicted to meet the next support of relevance around 131.50, where recent lows and a Fibo retracement (of the October’s rally) coincide. A move further south from here should expose a visit to another Fibo level at 130.97.

In the broader scenario, while above the 200-day SMA at 130.29, the outlook for the cross is expected to remain constructive.

EUR/JPY daily chart