Search ForexCrunch
  • EUR/JPY extends the rally to new 2021 highs around 133.50.
  • Further north comes in the 134.00 hurdle.

EUR/JPY keeps the rally well and sound and leaves behind last week’s consolidation to record new YTD peaks in the 133.50/55 band.

Further gains look likely in the very near-term. That said, there is an interim resistance around the 134.00 neighbourhood. Further upside should remain in the pipeline as long as the cross remains underpinned by the immediate support line (off the March lows) near 130.80. This area is also reinforced by the 50-day SMA, today at 130.84.

However, a potential corrective move should not be ruled out in the very near-term, as EUR/JPY entered into the overbought territory, as per the daily RSI (72.16).

In the broader picture, while above the 200-day SMA at 126.91 the broader outlook for the cross should remain constructive.

EUR/JPY daily chart