EUR/JPY Price Analysis: Further downside could retest 136.85

• EUR/JPY keeps the choppy trade well and sound so far this week.
• A deeper pullback could visit the July low at 136.85.

EUR/JPY partially reverses Tuesday’s drop amidst the improvement in the risk-associated universe midweek.

The cross remains under pressure and is vulnerable to further decline while below the 4-month resistance line near 141.90. Against that, the 100-day SMA should offer temporary contention at 137.44 ahead of the July low at 136.85 (July 8).

In the longer run, the constructive stance in the cross remains well underpinned by the 200-day SMA at 133.62.

EUR/JPY daily chart