- EUR / JPY hit new 2021 highs near 130.40 on Friday.
- Overbought conditions could trigger a downward correction.
EUR / JPY advanced even further and finally passed the 130.00 barrier to mark new yearly highs near 139.40 early in the session.
While the crossover quickly faded, the bullish bias still holds. That said, it seems likely that there will be more rises with the next intermediate target at the hurdle of 131.00 followed by the summer 2018 high of 131.98 (July 17 high).
Reinforcing the current positive stance, the EUR / JPY continues to trade above the immediate support line (from the low of November 19, 2020) at the 127.30 area, also coincident with the 50-day simple moving average.
On the broader view, as long as it is above the 200 SMA at 124.74, the outlook for the crossover should remain constructive.
EUR / JPY day chart
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