• EUR/JPY is correcting within a bullish advance.
• Given the short and medium-term trends are bullish more upside it expected providing certain conditions are met. 

EUR/JPY is pulling back after rising above the ceiling of its multi-month range and breaking above the cluster of major moving averages lying just above.  

EUR/JPY Daily Chart 

The short and medium-term trends are bullish suggesting the odds favor more upside to come and a resumption of the uptrend. A break above 166.69 (October 31 high) would probably confirm a continuation higher. 

Resistance at 167.96 (July 30 swing high) could act as a barrier to further upside. The minimum target for the breakout from the range lies at 169.68, the 61.8% Fibonacci extrapolation of the height of the range to the upside. 

The Relative Strength Index (RSI) momentum indicator is not yet in the overbought zone (above 70) suggesting the pair has room to go higher.