• EUR/JPY extends the leg lower well below 130.00 midweek.
  • Interim support now emerges in the mid-128.00s.

EUR/JPY adds to Tuesday’s pullback and breaches the psychological 130.00 level with certain conviction.

The breakdown of the critical 200-day SMA (129.52) opens the taps for a deeper pullback in the very near term. That said, there is an interim support at the Fibo level (of the June-August drop) at 129.39 ahead of the YTD low at 127.93 (August 19).

The sustainable break below the 200-day SMA should shift the outlook for EUR/JPY to bearish (from constructive).

EUR/JPY daily chart