EUR/JPY Price Analysis: Extra gains seen above 127.50

• EUR/JPY resumes the upside following two pullbacks in a row.
• Next on the upside comes in the 2021 high near 130.50.

EUR/JPY resumes the upside to the 130.00 neighbourhood, leaving behind the pessimism observed at the beginning of the week.

The bid bias in the cross remains well and sound for the time being. That said, if the yearly highs in the mid-130.00s are cleared, then extra gains could favour a test of the 131.00 hurdle followed by the summer 2018 high at 131.98 (July 17).

Reinforcing the current positive stance, EUR/JPY keeps trading above the immediate support line (off November 19 2020 low) in the 127.50 area, also coincident with the 50-day SMA.

In the meantime, while above the 200-day SMA at 124.84 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart