EUR/JPY Price Analysis: Further weakness remains on the cards

• EUR/JPY extends the weekly leg lower to the 121.60 region on Friday.
• Further south comes in the 200-day SMA around 121.15.

The selling momentum in EUR/JPY remains well in place at the end of the week and forces the cross to drop to new 3-month lows in the 121.60 zone earlier on Friday.

Bets for extra losses remain on the rise and the door is now wide open to a deeper retracement to, initially, the 200-day SMA in the 121.10/15 band, challenging at the same time the positive outlook on the cross.

Looking at the broader scenario, while above the 200-day SMA at1 121.13, the outlook on EUR/JPY is expected to remain constructive.

EUR/JPY daily chart