EUR/JPY Price Analysis: Technical correction in the offing?

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• EUR/JPY comes under some pressure following new highs.
• A sustained advance targets the 156.80 region in the near term.

EUR/JPY surrenders some gains and returns to the 155.00 region after advancing to new multi-year higher near 155.30 earlier on Monday’s session.

The current scenario remains open to extra gains in the short-term horizon. Against that, the next up-barrier of certain significance is expected at the weekly top recorded in late September 2008 at 156.83, which precedes the key round level at 157.00.

However, a corrective decline should not be ruled out in the short-term horizon due to the extreme overbought condition of the cross, as per the daily RSI well past the 76 level.

So far, further upside looks favoured while the cross trades above the 200-day SMA, today at 144.51.

EUR/JPY daily chart