In a previous analysis we noted the inverted head and shoulders pattern that was formed in EURJPY. Our target of 127.70-127.80 was enabled once price broke above the neckline resistance at 124.50.
Red rectangle- neckline resistance
Green line - trend line support
Red vertical line - size of upward move expected
In our latest EURJPY analysis we noted that price was moving sideways in a pause after the first upward move. Our expectation was to continue the move higher. Price today is breaking above the short-term resistance of 126.40 and as price respects the green support trend line, we remain bullish expecting 127.70 to be reached. Support is found at 125.85 and any move below this level will put in danger our bullish target. Traders who followed the bullish setup could now raise their stops to 125.85.
