EUR/JPY’s decline in mid-December reversed from a 127.39 low. The monthly chart shows the cross retaining its bullish bias, receiving positive hues from a bullish inverse head-and-shoulders pattern, Benjamin Wong, Strategists at DBS Bank, reports.

Retaining constructive bias

“The bullish outlook resonates well with the long-term monthly chart. We are now trending higher with a likely bullish inverse head-and-shoulders pattern.”

“The recent 127.39 low is fashioned as the penultimate support leg, before prices move on higher towards the 1.764 price extension located at 135.19 (beyond that rests the February 2018 peak at 137.50). This needs to bypass 134.42, the 61.8% Fibonacci retracement of 149.78 (December 2014 major peak) – 109.57(June 2016 major low).”