EUR/JPY Price Analysis: A drop to 116.00 is not ruled out

• The decline in EUR/JPY is seeing some respite on Monday.
• Immediate to the downside emerges the 116.00 region.

EUR/JPY is managing to keep business above the 117.00 mark on Monday and is looking to extend the rebound following last week’s lows in the mid-116.00s.

While further rangebound is expected in the short-term horizon, a move to the yearly lows in the vicinity of the 116.00 mark remains well on the cards for the time being. In addition, and supporting the consolidative stance, the daily RSI keeps hovering arounds the 42.0 area.

A breakout February tops in the mid-121.00s is needed in order to alleviate the downside pressure and shift the focus to a potential test of yearly highs in the boundaries of 123.00 the figure (January 16^th).

EUR/JPY daily chart