The EUR/JPY pair has been under bullish pressures since the 27th of November 2015, with the upward movement being noticed from as low as 129.66 to as high as 130.96.
During the course of the day on Wednesday, the cross went back and forth, advancing initially up to 130.92 to subsequently fall down to 130.30, and then climb again to test the boundaries of 131.00. Today, the pair stabilised below 130.80, reaching 130.55 at the time of writing, pending today’s outcome of the ECB meeting.
In the event that the sellers manage to gain momentum and force the price to break below 130.32, the pair could reach 130.61 and 129.66 respectively.
On the other hand, in the scenario where the buyers resume their previous activity and push the pair to break above 130.85, the price could escalate up to 131.12 and 132.04 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.