EUR/JPY Price Analysis: Downside pressure seen alleviated above 138.30

• EUR/JPY regains the smile following Thursday’s sharp drop.
• Extra gains are likely above the May high near 138.30.

Following Thursday’s deep sell-off, EUR/JPY seems to have met some decent contention near 132.60 for the time being.

If the recovery picks extra pace, then the cross could see the downside mitigated on a close above the May peak at 138.31 (May 9). The surpass of the latter should put a potential visit to the 2022 high at 140.00 (April 21) back on the radar.

In the meantime, while above the 200-day SMA at 131.02, the outlook for the cross is expected to remain constructive.

EUR/JPY daily chart