EUR/JPY Price Analysis: Corrective downside eyes a move to 119.70

• EUR/JPY loses the grip and breaks below the 121.00 mark.
• A potential move to the 200-day SMA at 119.70 is now on the cards.

EUR/JPY keeps fading the failed attempt to surpass the 122.00 neighbourhood, coming under increasing selling pressure on the back of the improved sentiment in the Japanese yen.

If the selling bias gathers traction, then the door should remain open for a probable move to the 200-day SMA in the 119.70 region.

As long as the 200-day SMA near 119.70 holds the downside, the outlook on the cross is seen as constructive. This contention area is also reinforced by June’s lows in the 119.30 region.

EUR//JPY daily chart