FX.co ★ EUR/JPY Hot Forecast for 19 March, 2021

• EUR/JPY clinches new yearly highs near 130.60 on Thursday.
• EUR/JPY extends the knee-jerk well below the 130.00 level.

EUR/JPY breaks below the psychological 130.00 yardstick and navigates in multi-day lows in the mid-129.00s. The pair reached 2021 highs in the 130.60 region on Thursday. The subsequent fall from 130.60 , erased those gains (and a little more) completing the up and down trading range today.

The bid bias in the cross remains well and sound for the time being. That said, a surpass of YTD highs near 130.60 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.

Despite the corrective downside, price had breach below a month old ascending trendline indicating a potential upcoming reversal . The development of MACD indicator (bearish divergence ) hints at swelling downside momentum. A daily close below 129.50 critical resistance flip support level would likely propel price back towards former support at 128.80