EUR/JPY Price Analysis: Negative outlook below the 200-day SMA

• EUR/JPY adds to the weekly downside and tests 130.50.
• The 200-day SMA comes next in the 130.40 region.

EUR/JPY loses ground for yet another session and already trades at shouting distance from the key 200-day SMA.

EUR/JPY flirts with the 55-day SMA in the mid-130.00s so far on Thursday. The loss of this area is expected to soon visit to the more significant contention zone around 130.40, where the 200-day SMA sits. This area of support remains propped up by the proximity of a Fibo retracement (of the October’s rally) near 130.30.

Below the 200-day SMA, the outlook for the cross is seen shifting to bearish.

EUR/JPY daily chart