EUR/JPY Price Analysis: Still scope for extra decline

• EUR/JPY resumes the downside after Monday’s uptick.
• Next on the way south comes the December 2021 lows near 127.50.

Sellers remain well in control of the sentiment surrounding EUR/JPY on turnaround Tuesday.

Price action in the cross keeps pointing to further retracements for the time being. Indeed, EUR/JPY accelerated the losses following the convincing breakdown of the key 200-day SMA (130.50) in past sessions, opening the door to a potential drop to the December 2021 low near 127.50 (December 3).

While below the 200-day SMA, the outlook for the cross is expected to remain negative.

EUR/JPY daily chart