FX.co ★ EUR/JPY Hot Forecast for 18 March, 2021

• EUR/JPY clinches new yearly highs near 130.70 on Thursday.
• Immediately on the upside comes in the 131.00 barrier.

EUR/JPY puts the 130.00 level under pressure after reaching fresh 2021 highs in the 130.65/70 band earlier in the session.

The bid bias in the cross remains well and sound for the time being. That said, a surpass of YTD highs near 130.70 should allow for extra gains with immediate target at the 131.00 hurdle followed by the summer 2018 high at 131.98 (July 17).

Reinforcing the current positive stance, EUR/JPY keeps trading above the immediate support line (off November 19 2020 low) in the 127.60 area.

If price fails to breach above 130.00 which coincides with fibonacci retracement zone, a decline towards the significant support resistance at 129.50 could be expected. The development of MACD indicator (bearish divergence) hints at swelling downside momentum. A daily close below 129.50 is likely to propel price back towards former support at 128.8.

However, if the trendline holds, bullish traders could pressure the currency exchange rate higher.