EUR/JPY made a bullish exit from its descending channel where we look forward to buy on weakness at 129.97 (61.8% Fibonacci extension, 50% Fibonacci retracement, horizontal swing low support). We expect the price to rise to its resistance at 131.83 (61.8% Fibonacci retracement, horizontal overlap resistance). We do have to be cautious of the intermediate resistance at 130.88 (100% Fibonacci extension, 38.2% Fibonacci retracement, horizontal overlap resistance).
RSI (55) shows a corresponding bullish exit of its descending line. The ichimoku cloud is showing signs of bullish pressure which contributes to our bullish bias.
Buy above 129.97. Stop loss at 129.31. Take profit at 131.83.
