EUR/JPY Price Analysis: Risks remain tilted to the upside

• EUR/JPY abruptly dropped to 2-week lows near the 139.00 mark.
• Another visit to the 2022 highs beyond 145.00 is not ruled out.

EUR/JPY adds to the weekly pullback and retreats to multi-session lows near 139.00 following the BoJ-Government intervention.

The cross met initial support in the vicinity of the 139.00 neighbourhood, where the 55- and 100-day SMAs coincide. The drop, however, lacked follow through and sparked a rapid rebound to the 140.00 mark and beyond.

Against that, further recovery should not be ruled out just yet and the cross continues to target the YTD peak at 145.63 (September 12) in the relatively short-term horizon.

In the meantime, while above the 200-day SMA at 135.51, the prospects for the pair should remain constructive.

EUR/JPY daily chart