EURJPY Broke Above the Major Resistance of 124.09

EURJPY broke above the major resistance of the December 2016 high of 124.09, indicating that the long term uptrend from the June 2016 low of 109.04 has resumed. The long term uptrend could be expected to continue over the next several weeks and the next target would be at around 130.00.

EURJPY chart

Correction is needed for short term

After breaking above 124.09 resistance, a pullback occurred and took price back to 122.55. The pullback from 125.81 would possibly be correction of the uptrend from the April 17 low of 114.85. Range trading between 121.60 and 125.81 would likely be seen over the next several days.

The near term support levels are at 121.60 and 120.30, which are the 38.2% and 50% of the Fibonacci supports taken from 114.85 to 125.81. As long as these levels hold, the uptrend from 114.85 could be expected to resume.

Near term resistance is at 125.81, above this level will confirm that the uptrend from 114.85 has resumed, and this could trigger another rise towards 130.00.

On the downside

The key support is now at the 50% Fibonacci support of 120.30. A breakdown below this level will suggest that lengthier consolidation for the long term uptrend from 109.04 is underway, and the following bearing movement could take price to around 117.00.

Technical levels

Support levels: 122.55 (May 18 low), 121.60 and 120.30 (38.2% and 50% of the Fibonacci supports), 114.85 (April 17 low).

Resistance levels: 125.81 (May 16 high), 130.00 (the major psychological mark).