- EUR/JPY found support at the base of the Ichimoku Cloud although a spike lower, likely stops, has defined the trend line support albeit with bullish RSI divergence and the price has subsequently climbed from the 38.2% Fibo with a target set on the 21-DMA (green on the chart below).
- On a continued climb, that 21-DMA will come into the confluence of the 23.6% Fibo of the same range guarding 126.45 Christmas time double bottom.
- A break there will bring the 200-DMA (blue on the chart below) at 127.80 into sight.
- On the flip side, a break of 123.50 will open risk towards 123.40 (Jan 7 and Jan 15 lows) ahead of the 50% Fibo at 123.18. A break there will likely see the price continue in its southerly trajectory, extending last September’s bear trend.
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