- EUR / JPY is trading very close to this year’s highs.
- Above it appears the area of 131.00.
EUR / JPY advanced even further, approaching the 2021 highs near 130.70 on Wednesday.
The recovery remains healthy and an attempt to test the 2021 high at 130.66 (March 18 high) looks increasingly likely in the near term. As long as it is above the short-term support line at the 128.30 region, more rises remain well on the table. This area of containment is reinforced by the proximity to the 50-day SMA at 128.54. A break below the latter should ease upward pressure and allow for some corrective downside on the short-term outlook.
The breakthrough of this year’s highs should pave the way for an attempt to reach the 131.00 level, ahead of the 2018 high of 131.98 (July 17 high).
In a broader perspective, as long as it is above the 200 SMA at 125.51, it will continue to look positive.
EUR / JPY day chart