EUR/JPY Price Analysis: Remains depressed below 129.00, focus on yearly support line

• EUR/JPY fades bounce off monthly low, grinds lower below 50-DMA.
• Bearish MACD signals, absence of oversold RSI keep sellers hopeful.
• 61.8% Fibonacci retracement level, August-September 2021 low offer intermediate supports.
• Bullish momentum remains elusive below 130.70, 50% Fibo. may add to the upside filters.

EUR/JPY pares intraday losses around 128.75, down 0.75% on a day heading into Tuesday’s European session.

Even so, the cross-currency pair remains on the bear’s radar as it fails to extend the previous day’s corrective pullback from monthly low, also comprising the 61.8% Fibonacci retracement (Fibo.)level of January-May 2021 upside, near 128.50.

Also favoring the EUR/JPY bears is the quote’s sustained trading below 50-DMA level of 129.35 amid bearish MACD and downbeat RSI, not oversold.

That said, lows marked during August and September months during the last year, around 127.90, will act as an extra filter to the south before directing the quote towards a one-year-old support line, near 127.75.

Meanwhile, a clear upside break of 129.35 will propel the quote towards breaking the 130.00 threshold. However, 38.2% Fibo. level surrounding 130.70 becomes crucial to watch for further upside moves.

Overall, EUR/JPY prices are likely to extend declines from early January even if the seller’s journey will be a bumpy one.

EUR/JPY: Daily chart

Trend: Further weakness expected