• EUR/JPY trades in a volatile fashion and bounces off the 138.00 area.
• The loss of the latter could prompt losses to accelerate in the near term.

EUR/JPY manages to stage quite a firm rebound after briefly trespassing the key contention in the 138.00 region on Thursday.

The cross needs to clear the 200-day SMA in a convincing note, ideally in the very near term, to shift the outlook to a more constructive one. Extra gains from here should revisit the key resistance area near 143.00 (high December 28, January 11).

The breakdown of the 138.00 support zone could spark further weakness in the cross to, initially, the so far YTD low at 137.38 (January 3).

EUR/JPY daily chart