EUR/JPY Price Analysis: Next target emerges near 126.50

• EUR/JPY resumes the upside and flirts with the 55-day SMA near 124.70.
• Extra gains are likely when/if this area of resistance is cleared.

EUR/JPY reverses Tuesday’s pullback and regains the 124.70 zone on Wednesday, where also coincides the 55-day SMA.

The cross needs to leave behind this zone on a convincing fashion and preferably in the near-term to allow for the continuation of the recovery to, initially, the mid-126.00s recorded on September 10.

Above the 200-day SMA, today at 120.96, the outlook on the cross is expected to remain constructive.

EUR/JPY daily chart