EUR/JPY Price Analysis: Above the 200-day SMA should target the 121.00 area
- EUR/JPY trading in weekly highs in the 120.50/60 band.
- A breakout of the 200-day SMA is need to allow for extra upside.
EUR/JPY is flirting with the key 200-day SMA in the 120.60/65 band on Tuesday, looking to break above the multi-session consolidative theme.
A serious surpass of the area is expected to mitigate the downside pressure and motivate the cross to shift its focus to the 121.00 neighbourhood, where sits the 55-day SMA ahead of the 21-day SMA at 121.26.
On the broader view, as long as the 200-day SMA at 120.63 caps the upside, the selling bias in the cross is predicted to stay unchanged, keeping on the cards a potential move to 119.65/25, November lows.
EUR/JPY daily chart