EUR/JPY Price Analysis: Short-term outlook now shifts to bearish

• EUR/JPY adds to the weekly leg lower and breaches 138.00.
• Further losses could retest the June low at 137.83.

EUR/JPY remains on the defensive and faces a deeper pullback in the short-term horizon.

The cross now faces prospects for extra decline if it breaks below the 4-month support line around 139.40 in a convincing fashion. Against that, the immediate contention appears at the June low at 137.83 (June 16) followed by the 100-day SMA, today at 135.84.

In the longer run, the constructive stance in the cross remains well propped up by the 200-day SMA at 132.98.

EUR/JPY daily chart