EUR/JPY Price Analysis: Bets for a move to 124.30 on the rise

• EUR/JPY extends the downside well below the 125.00 mark.
• The decline could extend further and visit the 124.30 area.

After last week’s new yearly tops around 126.80, EUR/JPY has embarked in a deep correction which it has already breached the 125.00 key support.

Further downside remains well on the table and is expected to initially test the 124.30/25 band, or last week’s low. Further south emerges the key contention area around 122.90.

A breakdown of the latter - where coincide the July 23 low and January’s top – carries the potential to exacerbate losses. This important area of contention is reinforced by the proximity of the 55-day SMA at 122.71.

EUR/JPY daily chart