• EUR/JPY extends Thursday’s sharp uptick to the 132.00 area.
• Next on the upside comes the October 2021 tops near 133.50.

EUR/JPY rose sharply on Thursday following the ECB gathering, taking out some key barrier on its way up and meeting some resistance in the 132.00 neighbourhood on Friday.

In light of the recent price action, further recovery in the cross should be in the pipeline. Against this, further upside initially targets 132.53 (high November 4) followed by 132.91 (high October 29) and finally the October 2021 peak at 133.48 (October 20).

In the near term, extra upside looks likely above the 3-month support line, today near 130.90. In the longer run, and while above the 200-day SMA at 130.45, the outlook for the cross is expected to remain constructive.

EUR/JPY daily chart