The EUR/JPY pair retreated after the most recent upwards momentum. Now it has found support at 132.11 level and now is fighting hard to resume its upside journey. Technically, the bias is still bullish but we still have to wait for a strong signal before taking action again.
The price action has developed a continuation pattern. So, validating this formation could announce an upside continuation. The pair will be driven by the technical factors as we don’t have any high-impact event that could change the sentiment.
EUR/JPY Technical Analysis!
As you can see on the H4 chart, the EUR/JPY pair escaped from a minor channel, from a flag. This formation was seen as a continuation one. Now the pair is struggling to consolidate above 113.54 level historical resistance.
132.44 – 132.54 area was seen as a major resistance zone. Stabilizing above it could bring new long opportunities. Staying near the ascending pitchfork’s upper median line (UML) may announce an upside breakout.
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