EUR/JPY PRICE ANALYSIS: EXTRA GAINS REMAIN IN THE PIPELINE

  • EUR/JPY clinched new 2021 highs in the 133.60/65 band.
  • The next hurdle on the upside emerges at the 134.00 hurdle.

EUR/JPY keeps the rally well and sound and manages to keep business in the upper end of the range past the 133.00 mark.

The continuation of the uptrend looks likely in the very near-term, with an interim resistance around the 134.00 neighbourhood. Further upside should remain on the cards as long as the cross remains underpinned by the immediate support line (off the March lows) near 130.90. This area is also reinforced by the proximity of the 50-day SMA.

However, a potential corrective move should not be ruled out in the very near-term, as EUR/JPY navigates the overbought territory, as per the daily RSI (70.24).

In the broader picture, while above the 200-day SMA at 126.94 the broader outlook for the cross should remain constructive.

EUR/JPY DAILY CHART



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