EUR/JPY Price Analysis: Bullish Bias Remains Unchanged

Editor • Mar 15, 2021 at 7:51 AM EDT

EUR/JPY recorded new 2021 highs near 130.50 on Monday. Correction looks likely on the back of overbought levels.

EUR/JPY advanced further north of the 130.00 mark and clinched new yearly tops in the 130.50 region earlier at the beginning of the week.

While the cross rapidly faded the move, bulls still remain in control. That said, extra gains appear likely with the next interim target at the 131.00 hurdle followed by the summer 2018 high at 131.98 (July 17).

Image Source: Unsplash

Reinforcing the current positive stance, EUR/JPY keeps trading above the immediate support line (off November 19 2020 low) in the 127.40 area, also coincident with the 50-day SMA.

In the meantime, while above the 200-day SMA at 124.77 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart

(Click on image to enlarge)

EUR/JPY

Disclosure:

Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.