• EUR/JPY attempts to break range, potential double bottom.
• Slide back under 128.50 to remove bullish bias.
• Key resistance awaits at 129.80 and then 130.10.

The EUR/JPY is rising for the third consecutive day on Wednesday and is attempting to break a lateral range that has been in place since the beginning of December. It is trading at weekly highs at 129.30, with a positive tone.

The daily RSI and Momentum point to the upside, supporting a bullish short-term outlook that will hold while EUR/JPY remains above 128.50. A slide below should negate the positive tone, exposing the next support at 127.85.

The 20-day moving average is turning flat, also supporting the euro. A consolidation around current levels should point to a test of the 129.70/80 area, the 100-day simple moving average. The next target is seen at 130.10

The rebound that started three days ago from 127.50 is becoming a potential double bottom that could anticipate more gains ahead. With a neckline at 129.00, the target is 130.50.

EUR/JPY daily chart