EUR/JPY Price Analysis: A drop to 125.00 is not ruled out

• EUR/JPY fades Tuesday’s uptick and returns below 126.00.
• Further downside could see he 125.00 area re-tested.

The bullish attempt in EUR/JPY has once again lost momentum in the 126.20 region.

The rejection from this area leaves the door open to the resumption of the leg lower and a potential visit to Monday’s YTD lows near 125.00 the figure. Further south emerges the 100-day SMA at 124.75 ahead of the Fibo retracement (of the October-January rally) at 124.55.

Looking at the broader picture, while above the 200-day SMA at 122.80 the outlook for the cross should remain constructive.

EUR/JPY daily chart