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  • EUR/JPY manages to bounce off new 2020 lows in the mid-114.00s.
  • The negative stance stays unchanged below the resistance line at 117.10.

Despite the ongoing recovery from fresh yearly lows in the 114.50 region, the selling bias in EUR/JPY remains well in place as well as the probability of a deeper pullback.

Against the backdrop of increasing downside pressure, the cross now faces the next relevant contention in the 113.70 region, where sits the November 2016 lows.

Looking at the broader picture, the downside pressure is expected to lose some momentum above the immediate resistance, today around 117.10.

EUR/JPY daily chart