- EUR/JPY is 0.75% higher on Wednesday and is one of the best-performing pairs.
- The price is heading to the 127.50 area which has been important in the past.
EUR/JPY weekly chart
EUR/JPY has been performing well on Wednesday after the JPY has another tough session. This week could make the 5th straight week of gains in the pair and the last time that happened was December 2016.
Looking at the chart, the price has now made a new higher high higher low wave. This is bullish but there has been a small amount of hesitation at the 50% Fibonacci retracement. The red horizontal line is the next major resistance and it is also very close to the 61.8% retracement level. Quite often you find a large spike rejection and looking ahead this could be the case.
The indicators are looking bullish too. The MACD histogram is green and the signal lines have recently crossed the midpoint. The Relative Strength Index is nearly in the overbought area and there is still space for a move higher.
Lastly, there is a Fibonacci extension level very close to the red resistance line. It just happens to be the 161.8% golden ratio so it could be firm. This current resistance is at the 138.2% extension and it could still work for a retracement in the pair.