The offered tone in the single currency prompted EUR/JPY to give away earlier gains to fresh 2021 highs in the 130.50 region. The persistent move higher in US yields sustain the increasing selling interest around the safe-haven JPY and therefore underpin the rally in EUR/JPY to levels last traded in October 2018 beyond the key 130.00 hurdle.
The offered note surrounding the European currency reflects the investors’ preference for the dollar against the backdrop of the better performance of the US economy in the wake of the pandemic in combination with firm vaccine rollout and prospects of higher inflation later in the year.