Further gains seen above the 200-day SMA

  • EUR/JPY reclaims the area above the 130.00 mark.
  • The cross needs to leave behind the 200-day SMA at 130.38.

EUR/JPY extends the rebound from weekly lows near 129.30 (February 22) and regains the 130.00 barrier and beyond on Wednesday.

Further recovery in EUR/JPY now faces the next resistance of note at the weekly high at 131.90 (February 16), which is regarded as the last defence for a potential move to the 2022 peak at 133.15 (February 10).

While above the 2-month line, today around 128.80, further upside in the cross should remain on the table in the very near term. On the longer term, the outlook for the cross is seen as constructive while above the 200-day SMA, today at 130.38.

EUR/JPY daily chart