EUR/JPY Price Analysis: Probable consolidation ahead of extra gains

• EUR/JPY looks consolidative in the upper end of the range.
• Next on the upside emerges the 2020 highs just above 127.00.

EUR/JPY adds to Friday’s gains and manages to keep the trade above the key barrier at 126.00 the figure at the beginning of the week.

Following last week’s tops around 126.70, EUR/JPY is now looking to move into a corrective/consolidative phase against the backdrop of the current overbought conditions. The continuation of the upside momentum should target the 2020 peaks in the 127.00 zone (September 1) in the near-term.

Looking at the broader picture, while above the 200-day SMA at 121.65 the outlook should remain constructive. The October’s low around 121.60 also reinforces this key contention zone.

EUR/JPY daily chart