EUR/JPY Price Analysis: Rising odds for a move to 116.00

• EUR/JPY extends the leg lower after the rejection from 119.00.
• Further south emerges the 2020 lows in the 116.00 region.

EUR/JPY remains under heavy downside pressure so far this week in response to the weak performance of the European currency and safe haven inflows bolstering the Japanese yen.

The recent price action has opened the door to a potential visit to the 2020 lows in the 116.00 neighbourhood in the short-term horizon.

Above the 200-day SMA, today at 119.70, the selling pressure is expected to subside and could allow for a move to the March peaks just above 121.00 the figure.