EUR/JPY Price Analysis: Next on the downside comes 127.50

• EUR/JPY stays under pressure and drops to 2-day low near 128.40.
• The December 2021 low (127.50) emerges as the next support of note.

EUR/JPY resumes the bearish trend and leaves behind Wednesday’s uptick.

Price action in the cross keeps signalling a scenario of lower prices for the time being. Indeed, the weakness around EUR/JPY has intensified following the convincing breakdown of the key 200-day SMA (130.49) earlier in the month, opening the door to a potential drop to the December 2021 low near 127.50 (December 3).

While below the 200-day SMA, the outlook for the cross is expected to remain negative.

EUR/JPY daily chart