EUR/JPY Price Analysis: Downside meets support near 131.50

• EUR/JPY resumes the downtrend and drops to 131.50.
• Next on the downside comes the 20-day SMA at 131.00.

Sellers have regained control and dragged EUR/JPY to fresh lows in the mid-131.00s so far on Wednesday.

The weekly pullback has met initial contention at the Fibo level near 131.50. Further south from here emerges the 20-day SMA, today at the 131.00 yardstick. This area is also reinforced by another Fibo level around 130.90.

In the broader scenario, while above the 200-day SMA at 130.14, the outlook for the cross is expected to remain constructive.

EUR/JPY daily chart