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EURJPY has most probably formed the right hand shoulder in an inverted Head and Shoulders pattern. Price has reached the neckline resistance once again at 124.50 area. This is the most important resistance that bulls need to break.
Green lines - Inverted head and shoulders pattern
EURJPY has stopped its current rise at the resistance area around 124.50. This resistance if broken will confirm the Inverted Head and Shoulders pattern and give us an upside target at 127.70 area. Support is at the right hand shoulder low. At the recent low at 123 we find the level that if broken downwards will cancel the bullish scenario. Bulls need to defend this level and eventually make a try to break above the 124.50-125 resistance area.
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