• EUR/JPY moves to multi-year highs near 137.50 on Monday.
• Next of relevance on the upside comes the 2018 tops near 137.50.

EUR/JPY quickly reversed Friday’s modest pullback and resumed the strong upside bias at the beginning of the week.

The upside momentum in the cross appears unabated for the time being. However, the cross has entered into the overbought territory, indicative that a potential corrective move could be in the pipeline in the short-term horizon. Next on the upside, in the meantime, emerges the August 2015 peak at 138.99 followed by the round level at 140.00.

In the meantime, while above the 200-day SMA at 130.03, the outlook for the cross is expected to remain constructive.

EUR/JPY daily chart