- EUR / JPY rises to multi-year highs, marking a strong continuation of Monday’s breakout.
- The indicators on the daily chart suggest that there is scope for additional gains.
EUR / JPY has risen above 128.00 to hit the highest level since December 2018, having confirmed the breakout of a symmetrical triangle, a bullish continuation pattern on the daily chart, gaining 0.55% on Monday.
The breakout is supported by a reading above 50 points or bullish on the 14-day RSI. The MACD histogram, an indicator used to identify trend changes and strength, is drawing higher bars above the zero line, indicating a strengthening of bullish momentum.
The 5 and 10 day simple moving averages are trending up, indicating a bullish setup.
As such, the EUR / JPY seems poised to test resistance at 128.68, where the 61.8% Fibonacci retracement of the 137.51 to 114.40 selloff is located.
A break below the rising low of 126.10, created on February 4, is needed to confirm a turn to the downside.
EUR / JPY daily and weekly chart
EUR / JPY technical levels
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