EUR/JPY Price Analysis: After reaching a new YTD high, the rally stalls around 133.00

• The EUR/JPY reached a new YTD high at 133.33 during the New York session.
• An upbeat market mood weighs on safe-haven peers, like the JPY and the CHF.
• EUR/JPY Price Forecast: A daily close above 133.00 would cement the upward bias; otherwise, a mean reversion move is on the cards.

On Tuesday, during the North American session, the shared currency reached a new YTD high vs. the Japanese yen. Factors like an improved market sentiment despite stalled peace talks between Russia and Ukraine, and central bank tightening, were not able to stop the rally above the 133.00 mark for the first time since October 2021. The EUR/JPY is trading at 133.15 at the time of writing.

As abovementioned, an upbeat market sentiment surrounds the markets.European equities closed with gains. Meanwhile, US stock indices record gains between 0.59% and 1.73% across the pond.

Overnight, the EUR/JPY stayed subdued around the 131.50 area. However, the cross-currency pair rallied once the European session kicked in, though it reached a YTD high at 133.33 during the New York session.

EUR/JPY Price Forecast: Technical outlook

From a daily chart perspective, the EUR/JPY is upward biased, though a daily close above a ten-month-old downslope trendline above 132.80.90 is needed to pave the way for further gains. Otherwise, the EUR/JPY would be vulnerable to a mean reversion move.

Hourly chart

The EUR/JPY intraday is bullish, though as the Relative Strength Index (RSI) gets out of overbought conditions at 66.98, the EUR/JPY could aim lower before resuming upwards.

If that scenario plays out, the EUR/JPY first support would be 133.00. Breach of the latter would expose 132.74, followed by 132.33, and then 132.00.