EUR/JPY Price Analysis: Correction likely ahead of further gains

• EUR/JPY’s needle-like rally remains everything but abated on Tuesday.
• There is now scope for a visit to the 2021 highs past 134.00 near term.

EUR/JPY extends the upside momentum and already surpasses the key barrier at 133.00 the figure on turnaround Tuesday.

The sharp move higher shows no signs of exhaustion so far, although the current overbought condition of the cross could trigger some consolidation or even a corrective move in the short-term horizon. Once digested one or the other, the cross should be able to resume the uptrend and attempt an assault to the YTD high at 134.12 recorded on June 1.

In the broader scenario, while above the 200-day SMA at 129.94, the outlook for the cross is expected to remain constructive.

EUR/JPY daily chart