• EUR/JPY fails to extend the daily rebound north of 156.70.
• Extra decline could revisit the 154.00 zone in the near term.

EUR/JPY could not sustain the earlier move to the 156.70 area and slipped back to the sub-156.00 region at the beginning of the week.

In the meantime, the cross maintains its rejection from last week’s YTD tops near the 158.00 area. Against this backdrop, further pullbacks should not be ruled out for the time being. That said, the door remains open for the cross to challenge the weekly low at 154.04 (June 20).

So far, further upside looks favoured while the cross trades above the 200-day SMA, today at 145.64.

EUR/JPY daily chart