In opinion of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, the cross could extend losses to, initially, the 120.00 neighbourhood.

“EUR/JPY is at last showing signs of failure at tough resistance which extends from current levels all the way up to the 200 day ma at 122.11. It currently remains capped by the 121.34/ 50% Fibonacci retracement and the 121.38 late July high (on a closing basis). Yesterday’s price action constituted an outside day to the downside, which is negative. We should see a test of the 20 day ma at 120.07 and the 55 day ma at 118.79 and eventually the 118.06 uptrend. The October low at 117.06 guards the 116.58/115.87 recent lows”.