Nick Nasad
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EUR/JPY: Setting Up For A Continuation of Rally

Last week, I took a look at the EUR/JPY and asked if the bottom was being it in on the daily chart. While the answer was uncertain at the time, the last several days have built more evidence towards that case, and we are now in the midst of a 6-session upswing with only short pauses.

  • The pair has pushed and closed above the 139.15 level on Friday.
  • After a brief rest to start the week, today has shown the pair rallying yet again, and in the daily that means it has pushed up against a downward sloping resistance trendline, which if the pair's bulls are able to overcome, then I can see the pair heading next towards 140.90.
  • Above that pivot, I would look for the 142.35/142.75 areas as the next important upside targets. For those level to come to fruition the risk-on attitude in equities needs to continue.
  • To the downside, the key level is the 139.15 pivot. After being cracked as a level of resistance it should now turn to a support level. If it does not and price falls back below it, then the bullish case likely needs to be reassessed a little bit.