EUR/JPY extends the leg lower and breaks below 128.00 to clinch fresh 9-month lows in the id-127.00s on Monday.

The continuation of the downtrend remains well on the cards for the time being. A sustainable breach of 127.48 (November 29) exposes a deeper pullback to the 2021 lows in the 125.00 neighbourhood (January 18).

Looking at the broader picture, the outlook for the cross is expected to remain negative while below the 200-day SMA, today at 130.54.