After finding the bottom near 123.00, EUR/JPY started moving higher. The price broke above 161.8% and then 261.8% retracement levels of the descending Fibonacci channel. In the same time frame, the price managed to break above the massive resistance at 125.00.
Currently, the price returned back to retest the 125.00 level, that now acts as support S1 (125.10). EUR/JPY failed to break on few occasions and now is trading just above the 200 Moving Average suggesting that uptrend is still valid.
Fibonacci applied to the first corrective wave after the 125.00 level breakout suggest potential target. Consider buying EUR/JPY at the current price 125.90, targeting the nearest resistance - 161.8% retracement level R2 (128.65). The stop loss should be just below 125.00 psychological support.
Support: 125.00
Resistance: 127.30, 128.65
