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  • EUR/JPY reverses two pullbacks in a row and retest 129.50.
  • Next on the upside emerges the YTD highs near 130.00.

EUR/JPY manages to regain some composure after two consecutive daily pullbacks on Tuesday.

The softer note around the greenback gives fresh oxygen to the risk complex and revitalizes the demand for the single currency.

While extra consolidation looks likely in the very near-term, bulls still appear in control and keep targeting the 2021 highs just below 130.00 (February 25). Further north of this area comes in 130.14 (November 7 2018) ahead of the summer 2018 high at 131.98 (July 17).

Reinforcing the idea of extra gains, EUR/JPY keeps trading above the immediate support line (off November 19 2020 low) in the 127.10 zone, where also converges the 50-day SMA.

In the meantime, while above the 200-day SMA at 124.62 the broader outlook for the cross should remain constructive.

EUR/JPY daiy chart