EUR/JPY Price Analysis: A move to 122.40 is now on the cards

• EUR/JPY extends the downside to the vicinity of 123.00.
• Risks of a deeper pullback stay well in the pipeline.

EUR/JPY accelerates the leg lower and drops for yet another session on Friday. The cross has so far managed well to meet support near 120.00 the figure.

If the selling impetus picks up extra pace, then the cross is expected to meet the next relevant contention area around 122.40, where sits the September’s low. Further south comes in the critical 200-day SMA just above 121.00 the figure.

Above this zone, the outlook on the cross is expected to remain constructive.

EUR/JPY daily chart