EUR/JPY Price Analysis: The resumption of the decline could test 118.00 (and below)

• EUR/JPY loses the grip further and drops to new YTD lows around 118.70.
• The negative view remains unchanged while below the 200-day SMA.

EUR/JPY faded Monday’s advance and it has resumed the downside on Tuesday, printing fresh 2020 lows in the 118.75/70 band.

If the selling bias gathers extra impetus, then the October 2019 low just above 117.00 the figure should return to the investors’ radar.

Below the key 200-day SMA, today at 120.42, the outlook on the cross is expected to remain bearish.

EUR/JPY daily chart