• EUR/JPY remains pressured towards short-term key SMA after declining the most in more than a week.
• Downside break of the one-week-old support line keeps sellers hopeful.
• 200-SMA, descending trend line from late June adds to the upside filters.

EUR/JPY holds lower ground near 136.80, after renewing the multi-day low on the break of the weekly support line. However, the 50-SMA challenges the pair sellers during Thursday’s initial Asian session.

Even so, downbeat RSI (14), not oversold, joins the bearish MACD signals to favor EUR/JPY bears.

Hence, the EUR/JPY prices are likely to break the immediate support, namely the 200-SMA level of 136.45, which in turn could direct the quote towards two-week-old horizontal support near 135.70.

Should the pair remains bearish past 135.70, the monthly low near 133.40 will be in focus.

On the flip side, a convergence of the previous support line and the 200-SMA appears a tough nut to crack for the EUR/JPY bulls, around 139.05 at the latest.

Even if the quote rises past 139.05, a downward sloping resistance line from late June, near 139.40-45, will precede the 140.00 threshold to challenge the EUR/JPY pair’s further upside.

Overall, EUR/JPY remains on the bear’s radar while targeting the monthly low as nearby support.

EUR/JPY: Four-hour chart

Trend: Further weakness expected