EUR/JPY Price Analysis: Extra decline could retest 127.50

• EUR/JPY accelerates losses to the proximity of 128.00.
• There is scope for further retracement in the short term.

EUR/JPY adds to Monday’s decline and approaches the 128.00 region on Tuesday.

Further losses in EUR/JPY remains well in the pipeline in light of the recent price action. That said, immediately to the downside comes the 2022 low at 127.91 (February 24) ahead of the December 2021 low in the mid-127.00s (December 20).

Further downside in the cross is likely below the 2-month line near 129.00. On the longer term, the outlook for the cross is seen as negative while below the 200-day SMA, today at 130.30.

EUR/JPY daily chart