EUR/JPY Price Analysis: A deeper pullback looks likely below 131.50

• EUR/JPY drops further and clinches new 3-week lows.
• A breach of 131.50 exposes further weakness near term.

EUR/JPY now accelerates the weekly leg lower and challenges the key contention area in the mid-131.00s on Thursday.

The continuation of the downtrend is predicted to meet the next support of relevance around 131.50, where recent lows and a Fibo retracement (of the October’s rally) coincide. A move further south from here should expose a visit to another Fibo level at 130.97.

In the broader scenario, while above the 200-day SMA at 130.32, the outlook for the cross is expected to remain constructive.

EUR/JPY daily chart