EUR/JPY tries to keep an uptrend
The daily Ichimoku Cloud has once again provided support for EUR/JPY. The pair recovered from the 125.00 area hit last week reaching 128.00. However, the single currency needs to break above resistance at 128.12 to improve the short-term outlook. Further resistance lies at 129.35/40 (June 12 high, 55-day MA), 131.10 and 131.60 (100-month MA). Support is seen at 126.70, 125.90 and 125.20.
The general uptrend will remain in place as long as EUR/JPY trades above 124.92 (April 16 low) and 124.45 (23.6% Fibo of advance from July). If these levels are breached, we’ll expect deeper correction to 119.00 (next retracement area).
Chart. Daily EUR/JPY