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

EUR/JPY appears firmer near 133.50, new 2021 highs

• EUR/JPY gathers further upside traction north of 133.00.
• Higher US yields support the selling bias in the Japanese yen.
• US FOMC Minutes next of relevance in the US calendar.

The upbeat note in US yields put the Japanese currency under downside pressure and favors the continuation of the upside momentum in EUR/JPY to new highs around 133.50 on Wednesday.

EUR/JPY adds to Tuesday's advance and keeps the rally well and sound for yet another session, this time leaving behind the key barrier at 133.00 the figure, levels last seen in April 2018

From a theoretical perspective, EUR/JPY exchange rate continues to follow the rising wedge pattern. It is likely that the currency pair could re-test the lower pattern ascending support line around 131.00 psychological round figure mark. If the given pattern holds, a back up could occur.

The development of MACD indicator (bearish divergence ) hints at swelling downside momentum.If price fails to break above 133.00 round figure mark , we will see decline towards next support at 132.10.