• EUR/JPY resumes the downside following the EUR sell-off.
• The near-term outlook could shift to negative below 139.25.

EUR/JPY quickly fades Monday’s uptick and breaks below the 140.00 mark to record new 3-week lows.

If the selling pressure accelerates, it could challenge the current short-term bullish bias. That said, if the cross breaches the 4-month support line near 139.25, it could open the door to a deeper pullback to, initially, the 55-day SMA, today at 138.80 prior to the June low at 137.83 (June 16).

In the longer run, the constructive stance in the cross remains well propped up by the 200-day SMA at 132.94.

EUR/JPY daily chart