EUR/JPY Price Analysis: Immediately to the upside aligns 131.08

• EUR/JPY extends the rebound to the 130.40 area.
• The next target of note comes in just above 131.00.

EUR/JPY advances for the fifth consecutive session and looks to add to the recent breakout of the psychological 130.00 barrier.

The cross now challenges the initial resistance in the 130.40 zone, while the continuation of the move allows for a test of the minor hurdle at the Fibo level (of the January-June rally) at 130.67 ahead of the more significant level at 131.08 (high July 13).

The 55-day SMA, also at 131.08, reinforces this key hurdle for the time being.

Above the 200-day SMA (129.31), the outlook for EUR/JPY is seen as constructive.

EUR/JPY daily chart