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  • EUR/JPY reverses Monday’s downtick and regains 129.50.
  • The 2021 highs near 130.70 emerge as the next target.

EUR/JPY manages to leave behind Monday’s pullback and advances further north of the 129.00 level on turnaround Tuesday.

The recovery looks firm and initially targets the interim hurdle at the 130.00 levels seconded by the more relevant 2021 high at 130.66 (March 18). While above the short-term support line in the 128.00 neighbourhood, extra gains remain well on the table. This area of contention coincides with the 50-day SMA.

In the meantime, while above the 200-day SMA at 125.22 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart