EUR/JPY Price Analysis: Extra downside on the cards

• EUR/JPY rebounds from earlier lows in the mid-127.00s.
• Further decline remains on the table for the time being.

EUR/JPY once again visited the contention area around 127.50 on Thursday, where dip buyers seem to have re-emerged.

The continuation of the downtrend remains well on the cards for the time being. While the next support of relevance emerges at the 2021 low near 125.00 the figure, a test of this level looks unlikely in the short-term horizon.

Looking at the broader picture, the outlook for the cross is expected to remain negative while below the 200-day SMA, today at 130.53.

EUR/JPY daily chart