Technical
EURJPY – Further upside is likely following the break of a bearish channel
Weekly: The medium-term bias remains bullish. Dips continue to attract buyers. A sequence of weekly higher highs and lows has been posted. The next barrier is the trend of weekly highs at 131.98
Daily: Broken out of the channel formation to the upside. We have a 38.2% Fibonacci pullback level of 129.17 from 124.62 to 131.98. Further upside is expected. We look for a re-test of the downward trending support
4Hour: The sequence for trading is higher highs and lows. We have a 38.2% Fibonacci pullback level of 129.94 from 126.62 to 131.98. The medium-term bias remains bullish. Bullish divergence can be seen on the 4-hour chart (the chart makes a lower low while the oscillator makes a higher low), often a signal of exhausted bearish momentum, or at least a correction higher. The corrective cycle lower looks to have stalled
Action: We look to buy a break of 130.25
Stop: 129.60
Targets: 131.95
