• EUR/JPY extends the leg lower to new 2022 lows near 129.40.
• Next on the downside comes the Fibo level at 128.82.

EUR/JPY struggles for direction around 129.80 after the earlier bullish attempt ran out of steam near the 130.00 barrier on Wednesday.

Price action in the cross now seems to favour extra decline in the short-term horizon, particularly after EUR/JPY remains unable to retest/surpass the YTD peaks in the 131.50/60 region (January 5). Against that, extra losses could retest the Fibo level (of the October-December drop) at 128.82.

While below the 200-day SMA, today at 130.53, the outlook for the cross is expected to remain negative.

EUR/JPY daily chart