• EUR/JPY corrects lower following recent cycle highs. 

• Overbought conditions favour a deeper retracement near term. 

EUR/JPY trades on the defensive after two consecutive daily advances and following fresh tops past the 137.00 mark (March 24). 

The underlying upside momentum in the cross remains unchanged, although a technical correction appears overdue mainly due to the overbought condition of the cross. Against that, the former 2022 high at 133.15 (February 10) should emerge as the next contention area in the very near term at least, 

In the meantime, while above the 200-day SMA at 130.06, the outlook for the cross is expected to remain constructive. 

EUR/JPY daily chart