EUR/JPY Price Analysis: Recovery could extend to 120.40, the 200-day SMA

• EUR/JPY rebounds from 2020 lows and regains 119.00.
• The next target of relevance aligns at the 200-day SMA at 120.40.

EUR/JPY has managed to regain upside traction and retake the 119.00 mark on the back of the better mood in the euro and renewed selling bias surrounding the Japanese currency.

If the upside bias gathers pace, then the 200-day SMA, today at 120.40, is expected to become the next target of significance.

In the meantime, while below the key 200-day SMA, the outlook on the cross is expected to remain negative.

EUR/JPY daily chart