• EUR/JPY resumed the downside following Wednesday’s advance.
• A drop to the 2022 low near 127.30 remains likely.

EUR/JPY partially fades the strong gains recorded on Wednesday and comes under selling pressure after failing to move further north of the 128.50 area.

Further losses in EUR/JPY remain in the pipeline, with a potential visit to the so far 2022 low at 127.29 (March 2) in the short-term horizon. Further south the cross is expected to target the February 2021 low at 126.10 (February 4) ahead of 125.59 (January 27 2021 low). The loss of the latter should open the door to a visit of the 2021 low at 125.08 (January 18).

In the longer term, the outlook for the cross is seen as negative while below the 200-day SMA, today at 130.25.

EUR/JPY daily