EUR/JPY met solid resistance around 133.00, 2021 highs

EUR/JPY’s upside run out of steam just ahead of 133.00.
The dollar regains momentum on yields pick-up.
US NY Empire State Index surprised to the upside in May.

Pablo Piovano FXStreet

The now offered note around the European currency prompts EUR/JPY to recede further from earlier new 2021 highs just below 133.00 the figure.

EUR/JPY looks to risk trends

EUR/JPY advanced to new 2021 highs just pips short of the key 133.00 yardstick during early trade, all in response to the initial offered tone surrounding the greenback.

The subsequent rebound in US yields lent some legs to the buck and put the European currency under selling pressure, sparking the ongoing corrective downside despite the persistent upside momentum in yields of the German 10-year Bund.

In the euro docket, Italian final CPI rose 0.4% MoM in April and 1.1% from a year earlier. In the US data sphere, the NY Empire State Index eased a tad from the previous reading and came in at 24.30 for the month of May. The print, however, exceeded expectations.

In Japan, Producer Prices rose more than estimated by 0.7% MoM and 3.6% on a year to April

Next on tap will be the NAHB Index followed by the TIC Flows.

EUR/JPY relevant levels

So far, the cross is losing 0.11% at 132.63 and faces the next support at 130.98 (weekly/monthly low May 5) seconded by 130.45 (50-day SMA) and finally 129.58 (weekly low Apr.23). On the other hand, a surpass of 132.95 (2021 high May 17) would pave the way for a test of 133.00 (psychological hurdle) and then 133.13 (monthly high Sep.21 2018).

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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