EUR/JPY holds a bull flag near the key resistance area.
EUR/JPY picked up steam on Thursday and hit two-week highs above the Ichimoku cloud in the four-hour chart, with the positive momentum in the RSI and the MACD painting a bright picture for the short-term.
The area around 118.43, where the 38.2% Fibonacci of the up-leg from 115.85 to 120.00 lies, is currently blocking the bullish action. If this resistance holds, the rally may take a breather around the 118.60 level before heading up to the 119.00 level and the 23.6% Fibonacci.
Failure to overcome the 118.43 resistance may put the bears in charge, shifting the spotlight to the 117.74-17.50 restrictive zone. If the sellers persist, with the price falling under the 117.00 support level too, the bearish action could gain extra legs, probably until 116.50.
Summarising, positive vibes seem to be rising in the EUR/JPY market. Yet it remains to be seen whether buyers have enough strength to overcome the 118.43-118.60 resistance region.
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