In recent analysis on EURJPY we noted that we turn bullish as the RSI is right on its support trend line and that price has more chances of turning higher than continuing lower. Price is moving higher from our bullish call at 129.34 and it is now at 129.82
Blue line- bullish divergence
Green line -expected path
EURJPY is moving higher as expected. Price is approaching the key resistance trend line at 130. Breaking above 130 would be a bullish sign. The bullish RSI divergence has already warned traders of a probable trend reversal and that is another reason why we turned bullish at 129.35. Our view remains bullish as long as we trade above 128.75 as we believe the risk reward ratio favors the bullish scenario.
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