EUR/JPY Price Analysis: Outsized pullback shifts the attention to the downside

• EUR/JPY drops heavily and breaks below the key 200-day SMA.
• Further weakness could see the February low revisited near term.

The abrupt sell-off forces EUR/JPY to break below the 141.00 mark and leave behind the key 200-day SMA at 141.77 at the same time.

The sharp retracement could now motivate the cross to challenge the February low at 139.54 (February 10), while the breach of the latter could put a potential drop to the 2023 low at 137.38 (January 3) back on the radar.

Below the 200-day SMA the outlook for the cross is expected to shift to negative.

EUR/JPY daily chart