EUR/JPY Price Analysis: Corrective downside could test the 200-day SMA

• EUR/JPY intensifies the leg lower below the 121.00 mark on Friday.
• Immediately to the downside is located the 200-day SMA near 119.60.

EUR/JPY is losing ground for the third session in a row at the end of the week following a broad-based pick-up in the risk-off sentiment and after being rejected from the mid-121.00s in past sessions.

If the selling pressure gathers traction, then the door is open for a potential move lower to the 200-day SMA at 119.62.

As long as this area of support 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