Hello traders! EUR/JPY is producing higher highs and higher lows, suggesting the validity of an uptrend. On the 8-hour chart, the price is rejecting the 50 Simple Moving Average which yet to be confirmed. Currently, the 8h candle is trying to break below the 61.8% Fibonacci support at 12.57. It will be very important to see the 8h and/or daily candle closing price because it could be the confirmation of either a downtrend or an uptrend continuation.
With the close above the 123.57, EUR/JPY is expected to rise towards the key resistance area near 1.24.40. This resistance is confirmed by two Fibonacci retracement levels, one being the 23.6% while another is 50% as per the chart below. This resistance also corresponding to the uptrend trendline which might be acting as the resistance in the coming days.
If/when EUR/JPY will reach and break above this resistance on the daily timeframe, perhaps a long term bullish trend should be confirmed. In this case, EUR/JPY could be heading towards the previously established resistance near 126.46.
On the other hand, if there will be 8h and daily close below the 123.57, bullish forecast will be invalidated and EUR/JPY downside risk should increase substantially.
Bias: Strongly bullish while the daily closing price is above 123.57
Potential Support Zone: 123.50-123.70
Potential Targets: 1124.42
Have a profitable trading!