• EUR/JPY comes under further pressure below the 200-day SMA.
• The continuation of the downtrend could see the 138.00 region revisited.

EUR/JPY reverses the recent 2-day bounce and drops to 3-week lows in the 139.50 zone at the end of the week.

While the cross is expected to maintain the side-lined theme in the short term, a convincing breakdown of the 200-day SMA at 141.03 should open the taps to extra weakness with the immediate target at the contention zone around 138.00.

In the meantme, below the 200-day SMA, the outlook for the cross is expected to remain bearish.

EUR/JPY daily chart