• EUR/JPY extends the leg lower to the mid-128.00s.
• Further south comes the December lows near 127.50.

EUR/JPY comes under further pressure in the 128.50 region at the beginning of the week.

Price action in the cross now seems to favour extra decline in the short-term horizon, particularly after EUR/JPY extended the breakdown of the key 200-day SMA (130.51) in past sessions. Next on the downside should come the December 2021 low near 127.50.

While below the 200-day SMA, today at 130.51, the outlook for the cross is expected to remain negative.

EUR/JPY daily chart