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  • The recovery in EUR/JPY met quite a tough barrier near the 118.00 mark.
  • Further downside should see the 2020 low in the 115.00 area retested.

After failing to extend the bounce beyond the 118.00 neighbourhood in past sessions, EUR/JPY is now facing downside pressure and trades back below the 117.00 mark.

If the selling bias intensifies in the near term, then another move to the yearly lows in the mid-115.00s should not be ruled out.

Looking at the broader picture, the downside pressure is expected to lose some momentum on a surpass of April tops in the 119.00 neighbourhood.

EUR/JPY daily chart