- EUR/JPY bulls pressing against compelling supply stricture.
- A 61.8% Fibo will be a big test ahead of prior daily support.
EUR/JPY bulls are taking charge and have moved on a prior area of the daily structure in late April and early May business.
The following illustrates the anticipated trajectory of a break or failure in this zone.
EUR/JPY daily chart
The 61.8% Fibonacci retracement level falls in at 132.20 and has a confluence with the aforementioned structure.
A break here opens risk to the prior support at 132.65 and a break of that would be expected to lead to an onward continuation of the recovery.
On failures at the April/May structure or on a break of the mid-June lows beyond the 61.8% Fibo, then the downside will be back in focus.