The EUR/JPY pair is strongly bullish in the short term and it seems determined to approach and reach new highs. The price action signaled that the sellers are exhausted and that the buyers could take full control again. Technically, you knew from my previous analyses that the pair developed a potential Inverse Head & Shoulders reversal pattern.
JPY rallied in the short term after BOJ intervention in the fx market. Still, the Yen remains sluggish as the BOJ maintains its monetary policy unchanged. Today, we had the Monetary Policy Meeting Minutes.
Surprisingly or not, the Euro appreciates even if the German Gfk Consumer Climate came in worse than expected. Actually, the EUR/JPY pair rallies only because the JPY is strongly bearish after Yen Futures' sell-off.
EUR/JPY Bullish Momentum!
Technically, the price action developed an Inverse Head & Shoulders pattern. Now, the rate registered an aggressive breakout through the neckline (downtrend line) and it seems determined to take out the 139.52 static resistance as well.
It remains to see how it will react around this static resistance. After its strong rally, the rate could come back to test and retest the neckline before resuming its growth.
The EUR/USD pair could develop a larger growth if it closes and stabilized above 139.52. Technically, the chart pattern could announce 200 pips upside movement.