EUR/JPY Price Analysis: Corrective downside is overdue

EUR/JPY extends the rally beyond 134.00 the figure.
The next barrier on the upside emerges at 134.40/50.
EUR/JPY keeps pushing higher and surpasses the 134.00 level, clinching at an equivalent time new 2021 highs.

The upside momentum remains well in situ and EUR/JPY could now attempt a visit to the September/October 2017 highs within the 134.40/50 band. Further gains appear likely as long because the cross remains underpinned by the immediate support line (off the March lows) above 131.00. This area is additionally reinforced by the proximity of the 50-day SMA (131.25).

However, the cross continues to navigate the overbought territory as per the daily RSI (76.35), which is indicative that a corrective move stays within the pipeline within the not-so-distant future.

In the broader picture, while above the 200-day SMA at 127.11 the broader outlook for the cross should remain constructive.

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