EUR/JPY Price Analysis: A drop to the 200-day SMA looks likely

• EUR/JPY starts the week on the defensive below 130.00.
• The 200-day SMA awaits in the mid-129.00s.

EUR/JPY quickly fades Friday’s advance, breaks below the 130.00 mark and re-focuses the attention to the downside on Monday.

The cross navigates the lower end of the recent range around 129.60 and threatens to challenge the critical 200-day SMA, today at 129.49, if the selling impulse accelerates in the near term. This area of contention is also reinforced by the 20-day SMA and the proximity of a Fibo level at 129.39.

The loss of this area should change the short-term outlook to neutral/bearish from constructive.

EUR/JPY daily chart