EUR/JPY Price Analysis: Sellers penetrate 38.2% Fibonacci retracement

• EUR/JPY has breached key Fibonacci retracement support at 122.32. 
• The breakdown has exposed the widely-tracked 200-day simple moving average.

EUR/JPY fell by 0.37% on Thursday to register its fourth-straught daily loss. 

Notably, the pair closed below 122.32 on Thursday. That level marks the 38.2% Fibonacci retracement of the rally from the May 7 low of 114.40 to Sept. 1 high of 127.07. 

The breakdown of the Fibonacci retracement support is backed by a below-50 or bearish reading on the 14-day relative strength index and shifted focus to deeper support at 121.14 (200-day simple moving average). 

The 5- and 10-day simple moving averages are also trending south. indicting a bearish setup. 

A close above the former support-turned-resistance at 123.02 (Oct. 15 low) would negate the bearish view. 

Daily chart

Trend: Bearish

Technical levels