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  • EUR/JPY keeps the trade close to recent tops above 134.00.
  • The bearish divergence in the RSI could prompt a leg lower.

EUR/JPY once again meets resistance just above 134.00 the figure, area coincident with recent YTD peaks.

If the buying impulse accelerates, then EUR/JPY could attempt a visit to the September/October 2017 highs in the 134.40/50 band. Further gains appear likely as long as the cross remains underpinned by the immediate support line (off the March lows) near 131.30. This area is also reinforced by the proximity of the 50-day SMA (131.35).

However, a corrective downside stays well on the cards as the cross flirts with the overbought territory. This view is reinforced by the bearish divergence in the daily RSI (68.70).

In the broader picture, while above the 200-day SMA at 127.15 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart