EURJPY Nearing Highs
EURJPY has turned higher again this week with price moving back up to just below the March highs at 130.69. Having rallied almost 5% off the 2021 lows, the EURJPY up-move looks to be in good health, with the market presenting fresh breakout opportunities for bulls. With the retail community holding a more than 80% short position in this pair currently, there is still room for the rally to extend further with the 132.02 and 133.13 levels the next upside targets for bulls. It is worth noting that we are seeing bearish divergence as price moves back up to highs. However, until the last swing low at 128.20 is breached, the market remains in a bullish trend.
Key Data on Watch
In terms of key data to watch this week for the pair, the ECB meeting minutes due on Thursday will likely have the biggest impact alongside the IMF meetings which will be taking place all week. The extent to which the ECB has been troubled by the recent rise in domestic and global yields will likely draw the most investor attention so traders are advised to manage their risk heading into the release. Any comments regarding optimism over the economic recovery should see EURJPY continuing higher near term.
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