EUR/JPY Price Analysis: Rising odds for a test of 118.50

• EUR/JPY broke below the key 200-day SMA and the 120.00 support.
• Further downside could see the YTD low in the mid-118.00s re-visited.

EUR/JPY is extending the downside to fresh multi-day lows in the sub-120.00 region on Tuesday.

Sellers has managed to leave behind the critical 200-day SMA near 120.40 and in doing so they have opened the door to a deeper retracement.

Against this backdrop, a move to the area of 2020 lows near 118.50 should not be ruled out in the short-term horizon.

EUR/JPY daily chart