EUR/JPY Price Analysis: Risk further downside to the 116.10 area

• EUR/JPY dropped and rebounded from the mid-116.00s.
• The next target now emerges at the YTD lows in the vicinity of 116.00.

After printing multi-week tops beyond 121.00 the figure last week, EUR/JPY sold off to Thursday’s low near 116.35, where some support appears to have turned up.

The outlook remains fragile, however, and if the selling impetus picks up pace, then the door will open for a visit to the 2020 low at 116.11 recorded in early March.

Looking at the broader picture, while below the key 200-day SMA at 119.91, the cross should keep the negative stance unaltered. A more serious rally is expected to surpass tops beyond 121.00 the figure.

EUR/JPY daily chart