EUR/JPY Price Analysis: A drop to 122.40 is not ruled out

• EUR/JPY drops to fresh 3-day lows near the 123.00 mark.
• The door remains open for a move to September’s low near 122.40.

EUR/JPY’s recent advance appears to have met a tough barrier at the 3-month resistance line in the 124.20/30 band.

The ongoing corrective downside carries the potential to extend further and re-visit the September lows in the 122.40 area. The continuation of this downtrend could well see the 200-day SMA just below 121.00 the figure retested.

Above this level the outlook on the cross is expected to remain constructive.

EUR/JPY daily chart