EUR/JPY (daily chart) as of April 5, 2013 has tentatively continued its bullish momentum from yesterday’s dramatic upside move of almost 550 points, or around 4 ½ %. That move launched off of key support around the 119.00 price region, which can be viewed as a double-bottoming pullback, as price first tested that 119.00-area low in late February. The 119.00 level is also in the vicinity of a 61.8% Fibonacci retracement of the last major bullish run. This pullback and recovery occurs within the context of a steep bullish trend extending as far back as the July 2012 low around the 94.00 level.
As EUR/JPY continues to climb after having broken out above a countertrend descending trend line extending from early February’s 127.70 high, the key upside objectives remain around the 128.00 and 131.00 resistance levels. Major downside support currently resides around the 123.00 level.
James Chen, CMT
Chief Technical Strategist
City Index Group
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