EUR/JPY Price Analysis: Further decline could test 121.00 and below

• EUR/JPY keeps correcting lower from the 123.00 area.
• Further south emerges the 200-day SMA at 120.89.

The downside momentum in EUR/JPY has accelerated in past hours on the back of the offered bias in the euro and investors’ preference for safe havens, which in turn rendered in extra strength in the Japanese yen.

The rejection from last week’s YTD highs in the boundaries of the 123.00 mark remains well and sound so far. The continuation of the leg lower is also favoured by the divergence in the daily RSI and should meet initial support at the 21-day SMA, today at 121.74.

If the selling impetus picks up extra pace, then the 121.03/120.89 band should come into focus, where coincide the 55-day and 200-day SMAs.

EUR/JPY daily chart