EUR/JPY Price Analysis: Further recovery targets the 2021 highs

• EUR/JPY fades the initial spike to the 133.70 area.
• Next on the upside emerges the YTD top just above 134.00.

EUR/JPY gathers further selling pressure and already tests the initial support zone around the 133.00/132.90 band on Friday.

If the recovery regains serious traction, then the cross could attempt a move to the YTD peak beyond 134.00 the figure ahead of the September/October 2017 highs in the 134.40/50. Further gains appear likely as long as the cross remains underpinned by the immediate support line (off the March lows) near 131.80. This area is also reinforced by the proximity of the 50-day SMA around 132.00.

In the broader picture, while above the 200-day SMA at 127.49 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart