The EUR/JPY pair rallied in the last hours and now it stands at 128.97 level. The Japanese Yen registered a strong sell-off as the Japanese Yen Futures plunged. Alos, technically, the currency pair escaped from a down channel signaling potential upside reversal.
Fundamentally, the pair was boosted by worse than expected Japanese data. The Bank Lending, Final GDP, Final GDP Price Index, and the Economy Watchers Sentiment came in worse than expected.
EUR/JPY Technical Analysis!
As you can see, EUR/JPY escaped from the down channel pattern signaling an upwards movement. The downtrend line retest followed by a new higher high activated potential further growth.
Now, it’s located above the 23.6% retracement level. Stabilizing above it could confirm an upside continuation at least towards the 38.2% retracement level. Still, in the short term, we cannot exclude a temporary decline after its amazing rally.
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