EUR/JPY Price Analysis: A test of 2020 lows is now ruled out

• EUR/JPY’s recovery met strong resistance in the 117.00 area so far.
• Immediately to the downside aligns the yearly lows in the mid-114.00s.

EUR/JPY is extending the corrective downside after the bullish attempt seems to have run out of steam in the proximity of the 117.00 yardstick on Tuesday, where is located the short-term resistance line.

The ongoing leg lower carries the potential to extend further and re-visit the yearly lows in the 114.50 zone in the near-term horizon.

The selling pressure in the cross is forecasted to subside somewhat on a breakout of this resistance line.

EUR/JPY daily chart