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18 May 2021
EUR/JPY Price Analysis: Corrective move in the offing?
- EUR/JPY clinches new 2021 highs above 133.00.
- Next of note on the upside is the 2018 high near 133.50.
EUR/JPY keeps pushing higher and records new 2021 highs in the area above 133.00 the figure on Tuesday.
A sustainable breakout of this level should put the 2018 high around 133.50 back on the radar in the short-term horizon. Further upside should remain in the pipeline as long as the cross remains propped up by the immediate support line (off the March lows) near 130.50. This area is also reinforced by the 50-day SMA, today at 130.54.
However, a potential corrective move could be shaping up as EUR/JPY has entered the overbought territory, as per the daily RSI (71.06).
In the broader picture, while above the 200-day SMA at 126.72 the broader outlook for the cross should remain constructive.
EUR/JPY daily chart
