EURJPY is recovering mainly on the background of the growing euro, which is reacting to the falling dollar. The currency pair has local resistance ahead
On D1 we see a weak uptrend, but, the bullish reaction in the market followed after the retest of the false breakdown of the 50-day moving average and this is quite a positive sign as the market is trying to consolidate above the strong support at 158.0. There is an ascending price channel forming on H4, which also coincides with the global trend in its direction. Hence, it is convenient for us to consider buying on this market. To buy, we should consider a rebound from support or a breakout of resistance. The target in our case is the border of the range 161.4.
Support levels: 158.6, 159,25
Resistance levels: 160.0, descending resistance.
The currency pair may continue the recovery stage. The breakout of the nearest resistance will only accelerate the distribution after the correction.