• EUR/JPY breaking range, looks to test 129.50 and 129.70/80.
•  Slide back under 129.00 should alleviate the bullish pressure.

The EUR/JPY is rising for the fourth consecutive day on Thursday and is testing the 129.50 area. Technical indicators still point to the upside, favoring more gains ahead. Still, the euro needs to break and hold above 129.50 in order to open the doors to more gains.

On the upside, the next resistance stands at 129.70/80 (100-day simple moving average) followed by 130.10. The 20-day moving average is turning to the upside, supporting the euro.

The strong bullish tone will ease if EUR/JPY drops under 129.00 in the short term. The next support stands at 128.50, followed by 128.30 (20-day SMA).  A slide below should negate the positive tone, exposing the next support at 127.85.

The rebound from 127.50 continues and is becoming a potential double bottom that could anticipate strength ahead. With the neckline at 129.00, the target of the pattern is 130.50.

EUR/JPY daily chart