- EUR/JPY extends the consolidative pattern around 130.00.
- A surpass of YTD highs should put 131.00 on the horizon.
The Eurozone single currency declined by 64 pips or 0.49% against the Japanese Yen on Monday. The exchange rate bounced off the lower line of an ascending channel pattern by the end of Monday's trading session. Most likely, the EUR/JPY pair could continue to edge higher today. EUR/JPY remains side-lined around the 130.00 neighbourhood for yet another session on turnaround Tuesday.
Further consolidation around current levels appears favoured in the very near-term. The resumption of the bull trend faces the next hurdle at the 2021 high near 130.70 (April 7) ahead of the 131.00 mark. However, a resistance level at 130.50-60 had provide resistance for the currency exchange rate within this session.
While above the short-term support line around 128.50, extra gains remain on the table, with the longer term target at the 2018 high at 131.98 (July 17).On the flip side, most likely the EUR/JPY pair could continue to edge lower during the following trading session if the price closes below ascending trendline. Supports awaits at 129.65 region.