EUR/JPY Might Bounce off the Support at 112.30

For a while it appeared that the overall bearish EUR/JPY trend would continue, but the pair found incredibly strong support at the 112.30 level and it has been consolidating above that support for weeks now. More importantly, it also formed a doji candlestick and a spinning top candlestick above that same level on the weekly time-frame, which suggest that the move to the downside might be exhausted for now. If that signal is valid and EUR/JPY bounces off the support at 112.30 it will likely start climbing towards the previous resistance level at 118.50. On the other hand, a possible breakout below 112.30 could lead to a further drop towards the previous low at 109.53.