EUR/JPY Price Analysis: Correction lower targets 118.80

• EUR/JPY extends the downside after weekly tops near the 121.00 mark.
• The support line at 108.80 is expected to keep the downside limited.

After printing multi-week tops beyond 121.00 the figure on Wednesday, EUR/JPY has come under selling pressure and dropped to the sub-120.00 region at the time of writing.

The cross has once again breached the key 200-day SMA in the 120.00 region and in doing so it has opened the door for a probable retracement to initially, the 21-day SMA just above 119.00 the figure ahead of the short-term support line in the 118.80/75 band.

As long as the 200-day SMA near 120.00, caps the upside, there is still scope for a deeper retracement.

EUR/JPY daily chart