- EUR / JPY extends the slide and breaks below the 122.00 support.
- Lower, the 200-day moving average emerges around 121.10.
Bearish momentum over EUR / JPY took an extra pace on Thursday and led to a break below key support at 122.00, hitting a three-month lows.
Therefore, more falls are within the favorable scenario and the door is now open for a deeper pullback, initially to the 200-day SMA at the 121.10 / 15 band, while challenging the bullish outlook of the cross.
Looking at the broader picture, as long as it continues above the 200 day SMA at 121.13, the outlook for EUR / JPY is expected to remain constructive.
EUR / JPY day chart
Credits: Forex Street