• EUR/JPY gives away part of Monday’s advance to new cycle tops.
• Overbought conditions could trigger a corrective move.

EUR/JPY trades in an unconclusive fashion around the mid-144.00s on Tuesday.

Extra gains in the cross appear well favoured for the time being. The next target, however, is not expected to emerge until the 2014 high at 149.78 (December 8). Of note, however, is that the cross remains within the overbought territory and suggests the likelihood of a technical correction in the short-term horizon.

In the meantime, the constructive outlook in the cross remains unchanged while above the 200-day SMA, today at 135.01.

EUR/JPY daily chart