• EUR/JPY adds to the weekly leg lower and approaches 139.00.
• Below the 4-month resistance line extra decline looks likely.

EUR/JPY retreats for the third consecutive session and flirts with the 55-day SMA near 139.20 at the end of the week.

While the 4-month resistance line continues to cap the upside around 140.35, further losses should remain in the pipeline and another drop to the July low at 136.85 (July 8) should not be ruled out. This area of contention appears reinforced by the proximity of the 100-day SMA, today at 137.07.

In the longer run, the constructive stance in the cross remains well underpinned by the 200-day SMA at 133.53.

EUR/JPY daily chart