- EUR/JPY navigates the lower end of the weekly range near 131.50.
- Extra rangebound looks the name of the game in the very near-term.
EUR/JPY reverses Monday’s small gains and returns to the 131.40/30 band following the unsuccessful attempt to move and stay above 132.00 the figure at the beginning of the week.
Current price action suggests the cross could enter a brief consolidation theme before resuming the upside in the short-term horizon. If that’s the case, then the immediate target emerges at the recent 2021 peaks near 132.40 recorded on April 28.
This view is bolstered by the immediate support line near 130.00, area coincident with the 50-day SMA.
In the meantime, while above the 200-day SMA at 126.33 the broader outlook for the cross should remain constructive.
EUR/JPY DAILY CHART