At the 4-hour chart, we can see that EUR/JPY is trying to reach the 127.47 level because this currency pair is still trading with the bullish bias. This has been already confirmed by technical analysis. The price is moving above the upward moving average. Before the pair reaches its target, it expected to make a retracement first as the condition for the healthy uptrend from the technical view. This retracement is confirmed by the divergence spotted between the price and the Stochastic Oscillator. Based on this fact, there is a possibility of the retracement of EUR/JPY with the target at the 126.16 - 125.86 levels. As long as the pair does not close below 123.96, the bullish outlook for this pair is still valid.
(Disclaimer)
