The EUR/JPY pair’s recovery from the early Europe low of 124.24 to trade abv 124.48 (23.6% of Jan high – Feb low) has kept hopes alive for a re-test of Friday’s high of 125.59, which if taken out shall open doors for a rise to 125.97 (38.2% of Jan high-Feb low).
On the downside, a daily close below 124.48 would shift risk in favor of a drop to March 2nd low of 123.09, which if breached could signal the technical correction is over.
- Hourly chart tell me the cross is finding bids at KC’s 55-MA level of 124.72
- A positive hourly candle now, closing above the rising trend line resistance would be an indication of a re-test of 125.22. If penetrated, could see cross rise to 125.59.
- Bears could strengthen if the pair dips below 124.36