EUR/JPY retreated a little after registering a strong upwards movement. It has declined trying to attract more buyers before resuming its upwards movement. It has found strong support and now it seems determined to jump towards fresh new highs.
The pair remains bullish even if the Euro has taken a hit from the ZEW Economic Sentiment indicators earlier today. The Yen remains bearish as the Japanese stock index, the Nikkei, could still increase. The JPY failed to extend its growth even if the Japanese PPI registered a 6.3% growth versus 5.8% expected.
EUR/JPY Technical Analysis!
EUR/JPY found support on the 130.73 former static resistance level and now it could resume its growth after jumping above the immediate downtrend line. Making a new higher high, a bullish closure above 131.22 could activate an upside continuation.
Technically, stabilizing above the weekly R1 (130.94) followed by a new higher high could confirm further growth towards the daily R1 (131.51) and up to the daily R2 132.12. I believe that the upside scenario could be invalidated only by a new lower low, by a drop and stabilization under the 130.73.
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