EUR/JPY Price Analysis: A technical correction is long overdue but…

• EUR/JPY clinches new YTD highs just below the 158.00 mark.
• Extreme oversold conditions should trigger a correction soon.

EUR/JPY comes under pressure soon after hitting new highs for the year in levels just shy of 158.00 the figure on Wednesday.

Considering the ongoing price action, further gains appear on the cards in the very near term. That said, the continuation of the uptrend should meet the next significant resistance not before the weekly high of 163.09 (August 22 2008).

The current extreme overbought conditions of the cross, however, are indicative that a corrective decline should not be ruled out at some point in the short-term horizon.

So far, further upside looks favoured while the cross trades above the 200-day SMA, today at 144.98.

EUR/JPY daily chart