The EUR/JPY pair has been under bullish pressures since the 9th of March 2016, with the upward movement being registered from as low as 123.04 to as high as 126.82.
On Thursday, the pair fell after ECB’s decision to cut interest rates, but following Draghi’s comments that most likely there will be no further cuts, the euro rebounded and the cross hit 126.74. Today, the pair is currently consolidating around the 126.07 and 126.82 area. With that being the case, it looks like the market will keep going higher, with the next target being the 127.29 level, followed by 128.35 respectively.
Alternatively, in the scenario where the sellers manage to overweigh buyers in trading volume and force the pair below 124.95, the price could head down to 124.51 and 123.04 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.