EUR/JPY Price Analysis: Firm bets for a move to 127.00 (and beyond)

• EUR/JPY keeps the trade well above the 126.00 barrier.
• Further upside now targets the YTD highs around 127.00.

EUR/JPY extends the rally well above the 126.00 barrier amidst the persistent improvement in the risk complex.

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 moved slightly into the overbought territory.

Looking at the broader picture, while above the 200-day SMA at 121.59 the outlook should remain constructive. The October’s low around 121.60 also reinforces this key contention zone.

EUR/JPY daily chart