• EUR/JPY bounces off recent lows in the 128.20 region on Wednesday.
• The cross could still attempt a move to the December 2021 low (127.50).

EUR/JPY seems to have met some dip buyers in the 128.20 region (January 25).

Price action in the cross keeps signalling a scenario of lower prices for the time being. Indeed, EUR/JPY accelerated the losses following the convincing breakdown of the key 200-day SMA (130.50) in past sessions, opening the door to a potential drop to the December 2021 low near 127.50 (December 3).

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

EUR/JPY daily chart