EUR/JPY: bullish prospects
EUR/JPY rose today to the highest levels since the end of May above 132.00 confirming the uptrend channel. In our view the pair has a good chance to rise to 133.80 (May high). The main obstacle lies at 131.70 (76.4% Fibo of the decline from May to June). There’s a bullish engulfing pattern at H4, so there might be a chance to buy lower. Support lies at 131.35, 131.10 (July 2 high), 130.80 and 130.40. Resistance is at 132.15 and 132.50.
On the daily chart we see that the Ichimoku Cloud has already thrice provided support for the pair. The prices rose above the Cloud this week.
Chart. H4 EUR/JPY