EUR/JPY Price Analysis: Still targets the 127.00 region

• EUR/JPY resumes the upside and tests the 126.70 area.
• Next on the upside emerges the 2020 highs just above 127.00.

EUR/JPY leaves behind Thursday’s pullback and resumes the upside to fresh tops in the 126.65/70 band at the end of the week.

If the buying pressure manages to gather further traction, then the 2020 peaks in the 127.00 zone (September 1) should return to the investors’ radar. Some correction, however, should not be ruled out as the cross navigates the overbought territory (RSI at 74.5 at the time of writing).

Looking at the broader picture, while above the 200-day SMA at 121.63 the outlook should remain constructive. The October’s low around 121.60 also reinforces this key contention zone.

EUR/JPY daily chart