EUR/JPY Is Rising

EUR/JPY has been consolidating above the support at 125.20 for the past several days and it seems that consolidation might continue for a little while longer. That said, there is an inverted hammer candlestick that has formed above the aforementioned support on the four-hour time-frame, which is a signal that the pair will start moving to the upside. Currently EUR/JPY is testing the resistance at 125.90 and if it breaks above that level we will likely see it climb towards the next level of resistance at 126.40 – 126.50. The continuation of the bearish trend, however, will not be confirmed before the pair climbs above the previous high at 127.28.