• EUR/JPY adds to Thursday’s strong pullback and breaches 140.00.
• The loss of the 200-day SMA opens the door to extra decline.

EUR/JPY extends the weekly leg lower and drops to multi-session lows just below the 139.00 mark on Friday.

The acute correction forces the cross to break below the key 200-day SMA (140.67) and paves the way for a deeper retracement in the short term. Against that, EUR/JPY could revisit the so far YTD low at 137.38 (January 3), which also coincides with the September 2022 low.

The outlook for EUR/JPY should remain negative while below the 200-day SMA.

EUR/JPY daily chart