EUR/JPY analysis for May 11, 2021
Looking at the graph on the four-hour time frame, we can do the following technical analysis. The EUR/JPY pair moves in one larger growing channel. What is very important is that the EUR/JPY pair is slowly slowing down after making the previous high at 132,529. Here we can now assume that we will see a certain pullback within this channel. For a stronger bearish signal, we can wait for the EUR/JPY pair to drop below the moving averages of MA20 and EMA20. If this happens, we ask for the first support at 131,500, and if it does not last, the next very important support is a place to break out of the zone around 131,000. If we expect the bullish trend to continue, then we expect a decline from the moving averages of the MA20 and EMA20 and a break above the previous high. Looking at the MACD indicator, we see that there is also a high probability that this indicator will turn to the bearish side.
From the economic data for these two currencies we can single out the following news and statements: German economic confidence reached its highest level in more than two decades in May. The slowdown in the third wave of COVID-19 made financial market experts more optimistic, ZEV survey data showed today. The ZEV indicator of economic sentiment rose sharply to 84.4 in May from 70.7 in April. The last time the indicator reached a higher level was in February 2000. The result was predicted to rise to 72.0. The current conditions index rose 8.7 points to -40.1 in May. This was also better than the economists’ forecast of -41.3. Inflation expectations for the euro area rose by 2.5 points in May to a new value of 77.6 points. The vast majority of experts expect the inflation rate to rise in the next six months.
The EU is urging AstraZeneca to deliver 120 million doses of vaccine by the end of June. The pharmaceutical company initially agreed to deliver 300 million doses of COVID-19 to the EU by the end of June but has delivered only 50 million doses. There were supply complications, and the dispute between the bloc and AstraZeneca over vaccine safety only further strained relations.
AstraZeneca has said it will deliver 100 million doses of the vaccine by the end of June. Still, the EU opposes it, saying it is ready to accept a full 300 million doses of the vaccine by the end of September.