EUR/JPY Price Analysis: Further downside could test the 124.40 area

• EUR/JPY keeps correcting lower and breaks below 126.00.
• Further north emerges the March 2019 high in the mid-127.00s.

EUR/JPY extends the weekly leg lower to fresh lows in the sub-126.00 region amidst the broader correction in the risk universe.

The current downside should be deemed as corrective only and carries the potential to re-visit the 124.40 zone (low August 21) ahead of the potential resumption of the bullish trend.

The constructive view around EUR/JPY is predicted to remain unchanged while above the 200-day SMA at 120.60.

EUR/JPY daily chart