EUR/JPY Price Analysis: Next target emerges at the 2020 highs

• EUR/JPY surpassed the key barriers at 125.00 and 126.00.
• Further upside now targets the YTD highs around 127.00.

EUR/JPY adds to the recent strong advance and breaks above the key resistance around 126.00 following Tuesday’s breakout of another important hurdle in the 125.00 neighbourhood.

If the buying pressure manages to gather further traction, then the 2020 peaks in the 127.00 zone (September 1) should return to the investors’ radar. Some correction, however, could be shaping up as the cross flirts with the overbought territory.

Looking at the broader picture, while above the 200-day SMA at 121.56 the outlook should remain constructive. The October’s low around 121.60 also reinforces this key contention zone.

EUR/JPY daily chart