- EUR/JPY is lacking a clear directional bias for the second day.
- Thursday’s high is now the level to beat for the bulls.
On Thursday, EUR/JPY created a Doji candle at the resistance of the trendline falling from Sept. 1 and Sept. 10 highs.
The pattern indicates indecision in the market place, and so does the two-way business seen so far today.
The pair is currently trading at the trendline resistance at 124.58, having clocked a high and low of 124.77 and 124.51 early today.
Acceptance above Thursday’s high of 124.88 would imply a bullish breakout and open the doors for 125.28 (61.8% Fibonacci retracement of the September drop).
Alternatively, a close below Thursday’s low of 124.36 would confirm a bearish Doji reversal and could yield a drop to 123.84 (Oct. 7 low).
Daily chart
Trend: Neutral
Technical levels
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