FX.co ★ EUR/JPY uptrend line as downside obstacle

EUR/JPY Temporary Retreat

The EUR/JPY dropped a little in the short term after reaching the 142.87 level. It is likely to approach the uptrend line which represents a downside obstacle. As long as it stays above it, the price could jump higher. Yesterday's high of 142.87 acts an upside obstacle. It declined after reaching this level.

On the other hand, the 141.72 former low stands as a downside obstacle as well. So, only dipping below it activates a new downside movement and invalidated an upside continuation.

EUR/JPY Trading Conclusion

Testing and retesting the uptrend line, staying above this obstacle may indicate a new upwards movement at least towards the former high of 142.87.