EUR/JPY Price Analysis: A correction lower looks likely

• EUR/JPY records new 2021 highs just past 134.00.
• The next barrier on the upside emerges at 134.40/50.

EUR/JPY corrects lower after clinching fresh YTD highs in the area just above 134.00 the figure during early trade.

However, the selling momentum could gain further traction in the very near-term as the cross flirts with the overbought territory, as per the daily RSI (69.24).

If buyers regain the upper hand, then EUR/JPY could attempt a visit to the September/October 2017 highs in the 134.40/50 band. Further gains appear likely as long as the cross remains underpinned by the immediate support line (off the March lows) above 131.00. This area is also reinforced by the proximity of the 50-day SMA (131.14).

In the broader picture, while above the 200-day SMA at 127.06 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart