- EUR/JPY corrects back to the trendline for its bullish advance.
- Given the short and medium-term trends are bullish, the odds favor more upside if certain conditions are met.
EUR/JPY is pulling back within its short and medium-term uptrend. The pair has fallen to the level of the trendline (dashed line) for the rally since the September lows. Given the trend is bullish and technical analysis theory says “the trend is your friend” the odds favor more upside once the correction completes.
EUR/JPY Daily Chart
A break above 166.69 (October 31 high) would probably confirm a continuation higher.
Resistance at 167.96 (July 30 swing high) could act as a barrier to further upside. The minimum target for the breakout from the range lies at 169.68, the 61.8% Fibonacci extrapolation of the height of the range to the upside (orange-shaded rectangle).
Read the full article here