EUR/JPY Price Analysis: Interim target is now at 118.50

• EUR/JPY advances to 2-day highs near the 118.00 mark on Tuesday.
• Immediately to the upside emerges interim target at the 118.50 region.

EUR/JPY is extending the bounce off recent lows in the 117.00 neighbourhood and is trading at shouting distance from the key barrier near 118.50 (May 21).

If buyers keep pushing higher, then there is scope for a potential test of monthly tops in the 118.50 area ahead of April’s peak around 119.00 in the short-term horizon.

Further up emerges the key 200-day SMA at 119.23, which could be considered as the last defence for a test of March’s highs in the 121.00 zone.

EUR/JPY daily chart