EUR/JPY Price Analysis: Outlook remains constructive above 138.60

• EUR/JPY extends the corrective downside below 142.00.
• Above 138.60, further gains in the cross are likely.

EUR/JPY drops for the third session in a row on Thursday, this time breaking below the key 142.00 support.

Despite the ongoing correction, the bullish bias in the cross remains well in place as long as the support line around 138.60 holds the downside. This area of contention is currently reinforced by the 55-day SMA.

The resumption of the upside bias could see the YTD top at 144.27 (June 28) returning to the radar ahead of the round level at 145.00 and prior to the 2015 high at 145.32 (January 2).

EUR/JPY daily chart