• EUR/JPY remains side-lined around the 132.00 region.
• Further upside likely above the 132.70 area in the near term.

EUR/JPY extends the consolidation around the 132.00 level for yet another session on Monday.

The recovery looks stuck, however, and the cross needs to clear last week’s tops near 132.70 to allow for further upside. This area of resistance is reinforced by the 20-day SMA and the 6-month line (off 2021 lows recorded on January 18). Further north comes in the 133.00 yardstick ahead of the 2021 highs at 134.12 (June 1).

The daily RSI navigates near the 45 level, supporting the view of further rangebound in the near term.

In the broader picture, while above the 200-day SMA at 127.80 the broader outlook for the cross should remain constructive.

EUR/JPY DAILY CHART