- EUR/JPY’s decline seems to have met contention near 119.80.
- Immediately to the downside emerges the 119.60 region.
The downside in EUR/JPY has picked up extra pace after breaching the key 200-day SMA in the 120.870 region on Friday and the 100-day SMA around 120.30 on Monday.
The fresh downside to YTD lows was so far contained in the 119.80 area (Tuesday), although the outlook on the cross remains fragile amidst alternating risk appetite trends and the persistent weakness in the euro.
Further out, as long as the 200-day SMA ay 120.72 caps the upside, the selling bias in the cross is expected to remain unchanged and keeps on the cards a potential move to 119.65/25. November lows.
EUR/JPY daily chart