EUR/JPY Price Analysis: A test of the 200-day SMA stays on the cards

• EUR/JPY extends the downside and clinches 4-week lows.
• The 200-day SMA comes next in the 130.40 region.

EUR/JPY adds to the ongoing bearish move and breaks below the 131.00 support with some conviction.

The continuation of the downtrend is predicted to meet the next interim support at the 55-day SMA at 130.48 ahead of the more significant level at the 200-day SMA near 130.40. This area of contention stays reinforced by the proximity of a Fibo retracement (of the October’s rally) near 130.30.

Below the 200-day SMA, the outlook for the cross is seen shifting to negative.

EUR/JPY daily chart