EUR/JPY has registered important growth lately. It has also jumped above the downtrend line signaling an upside reversal. You can see that the pair has dropped within a down-channel pattern. If the price escapes from this formation, it will indicate that EUR/JPY could resume its growth.
The area between the former high of 129.58 and the low of 129.26 is seen as a support zone or a downside obstacle. The price has a chance to increase as long as it stays above this area. In the short term, we cannot exclude a temporary decline after the current amazing rise.
Trading conclusion
EUR/JPY could jump higher as long as it stays above 129.58 - 129.26 area and above the downtrend line. A minor decline could help us to catch a new upside momentum. The high of 130.44 is seen as a potential upside target.
The material has been provided by InstaForex Company - www.instaforex.com