EUR/JPY Price Analysis: Extra upside awaits above 138.40

• EUR/JPY adds to Thursday’s bounce and approaches 138.00.
• Further gains appear likely on a close above the 138.40 region.

EUR/JPY bounces further in the second half of the week and looks to reclaim the 138.00 barrier and above in the near term.

The continuation of the upside momentum is expected to meet an interim hurdle at the 100-day SMA at 138.09 prior to the August top at 138.39 (August 10). The surpass of this level should allow for extra gains to, initially, the 55-day SMA at 139.63.

While above the 200-day SMA at 133.90, the outlook for the cross is expected to remain constructive. This contention zone also appears underpinned by the proximity of the August low at 133.39 (August 2).

EUR/JPY daily chart