• EUR/JPY resumes the upside following Monday’s pullback.
• The 134.40 region keeps supporting the downside.

EUR/JPY bounces off lows in the 134.40 zone on Tuesday.

The underlying upside momentum in the cross remains unchanged for the time being. However, EUR/JPY could enter a consolidative phase before resuming the rally. Against that, the next hurdle remains at the 2022 high at 137.54 (March 28) prior to a probable visit to the August 2015 peak at 138.99 (August 15) and ahead of the round level at 140.00.

In the meantime, while above the 200-day SMA at 130.12, the outlook for the cross is expected to remain constructive.

EUR/JPY daily chart