EUR/JPY continues to slowly drift higher, holding onto its short-term steep upside support line. On a bigger picture, the pair has placed itself back above the mid-term upwards moving trendline, drawn from the 18th of August last year. Everything points to a continuation towards higher levels, but one should remain cautious as the upside could be limited, due to the downwards moving trendline, taken from the peak of the 2nd of February.
As long as both the aforementioned upwards moving trendline and the upside resistance lines remain intact, we will stick to the idea of EUR/JPY continuing its uprise for the short run. The 130.30 level is currently acting as a strong resistance area, but a strong push through that level could open the path towards the next key area of resistance at 130.90, which currently coincides with the aforementioned downwards moving trendline.
On the downside, before we could start examining whether the short-term outlook has turned negative, we would need to see a break of, not only the short-term steep uprising support line, but also the previously mentioned upwards moving trendline. Only then we could fully turn our heads to the bears and aim for lower levels. A break below the 129.55 area could open the way to the 129.25 mark. If that level fails to withhold the rate from dropping further, then the pair could end up moving towards the 128.65 level, or event 128.20 zone.
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