• EUR/JPY resumes the downside and breaches 131.00.
• Further decline exposes a test of the 130.00 zone.

EUR/JPY posts moderate losses and return to the sub-131.00 area at the beginning of the week.

Sellers seem to have regained the upper hand and now push the cross below the key 200-day SMA, today at 130.52. Extra losses now seem likely, with the initial target at the monthly low at 130.04 (January 3) ahead of the temporary contention at the 100-day SMA at 129.92.

While below the 200-day SMA the near-term outlook for EUR/JPY should remain negative.

EUR/JPY daily chart