EUR/JPY Price Analysis: Extra gains expected above the 200-day SMA

• EUR/JPY rebounds sharply and regains the 121.00 mark and above.
• Above the 200-day SMA the outlook on the cross is seen as constructive.

EUR/JPY has staged a sharp rebound on the back of renewed and increased selling bias surrounding the Japanese currency.

The cross has now surpassed the 200-day SMA in the 120.40 region with apparent conviction and is currently flirting with the 55-day SMA in the 121.00 neighbourhood.

The sudden climb has now opened the door to a potential visit to the 2020 high at 122.86 (January 16^th). In addition, while above the key 200-day SMA, the outlook on the cross is seen as positive.

EUR/JPY daily chart