EUR/JPY Price Analysis: Bullish bias remains unchanged

• EUR/JPY recorded new 2021 highs near 130.50 on Monday.
• Correction looks likely on the back of overbought levels.

EUR/JPY advanced further north of the 130.00 mark and clinched new yearly tops in the 130.50 region earlier at the beginning of the week.

While the cross rapidly faded the move, bulls still remain in control. That said, extra gains appear likely with the next interim target at the 131.00 hurdle followed by the summer 2018 high at 131.98 (July 17).

Reinforcing the current positive stance, EUR/JPY keeps trading above the immediate support line (off November 19 2020 low) in the 127.40 area, also coincident with the 50-day SMA.

In the meantime, while above the 200-day SMA at 124.77 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart