EUR/JPY Price Analysis: Potential test of 127.50 near-term

• EUR/JPY approaches the upper end of the range near 127.00.
• The net target comes in at the 2020 highs around 127.20.

EUR/JPY adds to recent gains and trades at shouting distance from the key 127.00 neighbourhood on Wednesday.

If EUR/JPY manages to surpass the December high near 127.20 (December 29) then the next target of relevance will be at the 2019 peaks in the mid-127.00s recorded in early March of that year.

Looking at the broader picture, while above the 200-day SMA at 122.38 the outlook for the cross should remain constructive.

EUR/JPY daily chart