EUR/JPY challenges 2021 highs around 130.60, eyes on FOMC

EUR/JPY pushes higher and probes the area of 130.60/70.
The softer dollar fuels the better mood in the risk complex.
FOMC Minutes will dictate the markets’ sentiment later in the session.

Pablo Piovano FXStreet

The offered bias keeps weighing on the greenback and collaborates with the upside momentum in EUR/JPY to the proximity of the YTD highs near 130.70 on Wednesday.

EUR/JPY focuses on FOMC

EUR/JPY advances for the second session in a row and extends further north the recent breakout of the psychological 130.00 mark.

The dollar’s downside pressure, lower US yields and the softer note surrounding the Japanese currency all collaborates with the upside fashion in EUR/JPY which is already trading just pips away from the yearly highs near 130.70.

In the docket, Services PMI in Euroland and Germany surpassed the preliminary estimates for the month of March, adding to the idea that the recovery seems to be spreading well into the services sector.

Later in the NA session, investors are expected to closely follow the publication of the FOMC Minutes of the Fed’s interest rate decision last month.

EUR/JPY relevant levels

At the moment the cross is gaining 0.21% at 130.55 and faces the next hurdle at 130.66 (2021 high Mar.18) seconded by 131.00 (psychological level) and then 131.98 (2018 high Jul.17). On the other hand, a drop below 128.54 (50-day SMA) would expose 128.29 (weekly low Mar.24) and finally 127.14 (100-day SMA).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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