EUR/JPY Price Analysis: Corrective downside could extend to 130.00

• EUR/JPY struggles for direction amidst a broader leg lower.
• Next on the downside comes in the 130.00 neighbourhood.

EUR/JPY looks for direction amidst a negative start of the new month, meeting initial support around 131.00 for the time being.

The ongoing leg lower is seen as corrective only and carries the potential to extend to the 130.00 zone, where converge the 50-day SMA and the immediate support line (off the March’s low).

This area should hold the downside and prompt some reversion.

In the broader picture, while above the 200-day SMA at 126.37 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart