EUR/JPY Price Analysis: Further consolidation in the pipeline

• EUR/JPY extends the consolidation above the 126.00 level.
• Next on the upside emerges the 2020 highs near 127.20.

EUR/JPY extends the consolidative mood above the 126.00 level for yet another session at the beginning of the year.

The cross remains side-lined since December with gains so far capped by the 2020 high near 127.20 (December 29) and decent contention emerging around 125.70. The rangebound stance also looks reinforced by the RSI near the 50 area.

The breakout of the ongoing theme should motivate the cross to target the 2019 peak at 127.50 (March 1). Bearish attempts, on the other side, are expected to meet support in the 125.00 neighbourhood. (October/November highs).

Looking at the broader picture, while above the 200-day SMA at 122.32 the outlook should remain constructive.

EUR/JPY daily chart