EUR/JPY Price Analysis: Correction lower could test 125.60

• EUR/JPY extends the leg lower for the second session in a row.
• Weekly lows in the 125.60 area emerges as the next support.

EUR/JPY is adding to Monday’s losses and tests the 126.20 zone on Tuesday, where sits the 21-day SMA.

The renewed downside pressure is expected to meet interim support at the 55-day SMA at 125.77 and carries the potential to drag EUR/JPY to last week’s lows near 125.60 (January 27) in the short-term horizon.

Looking at the broader picture, while above the 200-day SMA at 123.22 the outlook for the cross should remain constructive.

EUR/JPY daily chart