EUR/JPY Price Analysis: Extra decline looks likely

• EUR/JPY accelerates losses below the 200-day SMA.
• Immediate support emerges around 128.50 in the near term.

EUR/JPY drops further and breaches the critical 200-day SMA near the 123.00 yardstick on Monday.

The selling pressure forces the cross to break below the 200-day SMA (128.96) as well as the key 2021 support line around 129.15. In the current context, further losses appear well in the pipeline with the immediate target at the July’s low in the mid-128.00s (July 20).

If the breakdown of the 200-day SMA becomes sustainable, then the outlook for the cross is expected to shift to negative.

EUR/JPY daily chart