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  • EUR/JPY intensifies the recent breach of the 126.00 mark.
  • In this selling context, further downside remains well on the table.

EUR/JPY extends the downtrend and approaches the 125.00 mark on Monday, extending the negative streak for the seventh session.

The ongoing leg lower met initial contention in the low-125.00s on Monday, area reinforced by the the 55-day SMA (125.17) and October/November tops. A breakdown of this region should expose the 100-day SMA at 124.75 ahead of the Fibo retracement (of the October-January rally) at 124.55.

Looking at the broader picture, while above the 200-day SMA at 122.72 the outlook for the cross should remain constructive.

EUR/JPY daily chart