EUR/JPY Price Analysis: Door open to a test of the 200-day SMA

• EUR/JPY manages to reverse an earlier steep drop to 137.30.
• Chances of a potential test of the 200-day SMA look on the rise.

EUR/JPY now regains ground lost and flirts with the positive territory following the strong pullback to the 137.30 region during early trade.

The continuation of the downtrend appears likely in the very near term, particularly against the backdrop of a weaker euro and the prospects for further FX intervention by the BoJ/MoF.

That said, a deeper pullback to the 200-day SMA, today at 135.61, should not be ruled out yet.

EUR/JPY daily chart