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EURJPY continues to trade inside the bullish channel since October 2020. Price recently reached very close to the lower channel boundaries and provided bullish RSI divergence signals.
Blue lines- bullish divergence
EURJPY has support at 129-129.60. Bulls must defend this price level. This is the risk of trading the bullish side right now. Upside potential is big as price could be starting a new upward move and could reach 134-135 over the coming weeks. This scenario is valid as long as price holds above the key support we mentioned above. The bullish divergence signals by the RSI suggest that this scenario has increased chances of success.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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