EUR/JPY Price Analysis: Further losses expected below 130.45

• EUR/JPY extends the leg lower to the 130.40 area.
• The 200-day SMA holds the downside so far.

EUR/JPY adds to the ongoing decline and keeps navigating the area of 4-week lows in the 130.40 region on Friday.

EUR/JPY gyrates around the 55-day SMA in the mid-130.00s at the end of the week, while a drop below this area should expose another visit to the critical 200-day SMA around 130.40. 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 predicted to shift to bearish.

EUR/JPY daily chart