(124,85) The EUR/JPY confirmed an important extension of the corrective (?) move up already testing the 125 area where we expect some resistance at least until the employment figures today! Overall the cross is instead still consolidating interior the larger inside day with 118,60 – 125,50 still the levels to follow in the coming hours/ sessions. A daily closing above 125,50 will resume the move up suggesting a 130 overshooting!! The move up already aborted the suggested target at 116,41!!! The indicators of the daily chart are still well negative but those of the s/t ones are positive suggesting further upside potential. In the hourly hart we have however well overbought conditions and still potential negative reversals. However, in the same time the move up started forming bearish divergences suggesting a change of the tone. In the s/t we expect a correction that will however find support already at 124,30, where we find the former resistance line, now support; the holding of this line if tested will support further strength!! We stay on the sideline but chances suggesting higher levels are growing.
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