EUR/JPY Price Analysis: Recovery now targets the 128.50 area

• EUR/JPY resumes the upside above the 128.00 barrier.
• Next on the upside aligns the YTD high around 128.50 (February 17).

Following new YTD peaks in the 128.50 zone last week, EUR/JPY triggered a corrective downside to the 127.30 region so far.

The bullish move in place in the last couple of weeks appears unchanged and is expected to retest the mid-128.00s sooner rather than later.

A convincing surpass of this area should expose the 129.30 zone (November 29/December 13 2018 highs) ahead of the psychological hurdle at 130.00. Further up comes in monthly peaks at 130.14 (November 7 2018).

Reinforcing the idea of further upside, EUR/JPY keeps trading above the immediate support line (off November 19 2020 low) near 126.50. This area is reinforced by the 55-day SMA, also in this region.

Looking at the broader picture, while above the 200-day SMA at 124.01 the outlook for the cross should remain constructive.

EUR/JPY daily chart