- EUR / JPY pushes higher and tests the 130.60 / 70 zone.
- The weaker dollar fuels the best mood in the risk space.
- The FOMC Minutes will dictate market sentiment later in the session.
The bias offered continues to weigh on the dollar and contributes to the bullish momentum in EUR/JPY close to yearly highs near 130.70 on Wednesday.
EUR / JPY focuses on the FOMC
EUR / JPY is advancing for the second session in a row and extends further north from the recent breakout of the 130.00 psychological mark.
Downward pressure from the dollar, lower US yields, and weakness surrounding the Japanese currency all contribute to the bullish trend in EUR / JPY, which is already trading just pips from annual highs near 130.70 .
On the agenda, the PMI for services in the euro zone and Germany beat preliminary estimates for March, adding to the idea that the recovery appears to be spreading well to the services sector.
Later in the American session, investors are expected to closely follow the release of the FOMC Minutes of the Fed’s interest rate decision last month.
Relevant levels
Right now, the cross is gaining 0.21% at 130.55 and faces the next hurdle at 130.66 (March 18, 2021 high) seconded by 131.00 (psychological level) and then 131.98 (July 17, 2018 high). On the other hand, a dip below 128.54 (50-day SMA) would expose 128.29 (March 24 weekly low) and finally 127.14 (100-day SMA).
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