EUR/JPY Technical Analysis: Further downside should see 122.50 retested near term

• The bid mood around the Japanese safe haven is driving EUR/JPY lower at the beginning of the week, partially reversing Friday’s gains.
• That said, a deeper retracement is not ruled out, with immediate support at monthly lows in the mid-122.00s ahead of June 2017 lows around 122.40 and January’s ‘flash crash’ to sub-119.00 levels.
• Occasional bullish attempt, therefore, are seen as corrective only, facing the next hurdle in the 124.77/125.25 band, where converge the 21-day, 100-day and 55-day SMAs. EUR/JPY is seen offered while below 126.08, where sits the multi-month resistance line.

EUR/JPY daily chart