EUR/JPY Price Analysis: Minor contention comes around 134.00

• EUR/JPY adds to Tuesday’s losses well south of 136.00.
• Further decline could see the 134.00 neighbourhood retested.

EUR/JPY trades on the defensive for the second session in a row, this time breaching the 136.00 yardstick.

The continuation of the leg lower should meet an interim support at the 5-day SMA at 135.13, ahead of the 134.00 region (May 19 low), where decent contention is expected to emerge. If cleared, then a deeper retracement could see the May low at 132.65 (May 12), revisited.

In the meantime, while above the 200-day SMA at 131.28, the outlook for the cross is expected to remain constructive.

EUR/JPY daily chart