EUR/JPY Price Analysis: Euro strengthens, next resistance at 130.50/60

• EUR/JPY breaking range, targets 130.50/60.
• Euro above key moving averages, strong bullish tone.

The EUR/JPY is rising again after a brief pause and pullback on Tuesday. Recently the cross hit fresh monthly highs at 130.37 and it remains with a solid bullish bias, back above key daily moving averages (20, 55 and 100).

A double bottom pattern, with lows at 127.50 and a neckline at 129.10, has a target around 130.60, near a horizontal resistance. The area around 130.50/60 is set to be a barrier for the euro, that if broken, could clear the way for 131.00.

A decline under 130.00 would alleviate the bullish pressure, while a decline below 129.60 should point for an extension to 129.20. If the euro drops below 129.00, it would weaken significantly, showing difficulties in extending the recovery.

EUR/JPY daily chart