EUR/JPY Price Analysis: Corrective downside could test 131.60

• EUR/JPY retreats from Thursday’s new YTD highs past 133.00.
• Sellers might drag the cross to as low as the 131.60 area.

EUR/JPY partially reverses the recent advance to fresh tops further north of the 133.00 barrier (February 10).

Considering the recent price action, the ongoing corrective decline carries the potential to extend to the monthly high at 131.60 (January 5), which should offer initial contention. If breached, then the focus of attention should gyrate to a probable visit to the always relevant 200-day SMA, today at 130.47.

In the longer run, and while above the 200-day SMA, the outlook for the cross is expected to remain constructive.

EUR/JPY daily chart