EUR/JPY rests near 23.6% Fibonacci; ascending triangle holds.
EUR/JPY is testing the 23.6% Fibonacci region from the high on 126.80 to the low on 120.77, around 122.20 as it seems ready to continue the very short-term upside tendency. The 20- and 40-simple moving averages (SMAs) posted a bullish crossover confirming the recent bullish run. The RSI is sloping up approaching the 70 level, while the MACD has been rising over the last week.
A successful climb above the immediate level of 23.6% Fibo would increase positive speculation towards the 122.50minor resistance and then until the 123.10 – 123.15 area, which encapsulates the 38.2% Fibonacci of 123.10.
A possible pullback to the downside may meet support at the short-term moving averages currently at 121.90 ahead of the 121.50 level, taken from the latest lows.
In brief, EUR/JPY has been developing within an ascending triangle pattern over the last month and only a close above the significant area of 123.15 could change the long-term outlook to bullish.
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