• EUR/JPY reverses two daily advances in a row.
• Further upside remains in store in the short term.

EUR/JPY comes under some selling pressure soon after another failed attempt to test the 158.00 yardstick on Tuesday.

Considering the ongoing price action, some side-lined trading appears the most likely scenario for the time behind ahead of the potential resumption of the uptrend. Against that, further gains should meet the next hurdle of significance not before the weekly high of 163.09 (August 22 2008).

The ongoing overbought conditions of the cross, however, are indicative that a deeper knee-jerk should not be ruled out at some point in the short-term horizon.

So far, further upside looks favoured while the cross trades above the 200-day SMA, today at 145.34.

EUR/JPY daily chart