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  • EUR/JPY remains on the defensive and trades closer to the 121.00 area.
  • A move to the 200-day SMA in the mid-119.00s appears likely.

EUR/JPY keeps correcting lower so far this week and is approaching the key support at 121.00 the figure. This area of contention is home of the March’s peak.

The cross continues to recede from recent overbought levels (as per the daily RSI), hinting at the likeliness that the leg lower could extend further in the short-term horizon.

That said, if the selling pressure picks up pace, a visit to the 200-day SMA in the vicinity of 119.50 should not be ruled out.

EUR/JPY daily chart

 

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