Since the beginning of the year the currency lost over 1.0% although last week rose more than 1.0% and made a potential phase change, shifting from a distribution to a bullish phase.
Last week the EURJPY initially fell but found enough support near the 10-week moving average to turn north and closed in the green, near the high of the week, also the currency pair managed to close above the previous week high, which suggests a strong bullish momentum.
The currency pair is now trading above the 10 and the 50-week moving averages that should provide a strong dynamic support.
The stochastic is showing a strong bullish momentum however is still below the 50 mid line.
Expecting an upward move to a Fibonacci retracement at 123.535 on a break above the previous week high at 121.995 (scenario 1) although a bounce from the Fibonacci retracement at 123.535 could drag down the currency pair to the other Fibonacci retracement at 120.832 (scenario 2).