EUR/JPY Price Analysis: Weakness appears contained just below 133.00

• EUR/JPY extends the rebound from lows in the 132.90/85 band.
• The 2021 highs above 134.00 now emerge as the next target.

EUR/JPY gather extra pace and puts further distance from multi-day lows near 132.90 recorded earlier in the week.

If the recovery regains serious traction, then the cross could attempt a move to the YTD peak beyond 134.00 the figure ahead of the September/October 2017 highs in the 134.40/50. Further gains appear likely as long as the cross remains underpinned by the immediate support line (off the March lows) near 131.50. This area is also reinforced by the proximity of the 50-day SMA (131.77).

In the broader picture, while above the 200-day SMA at 127.34 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart