The EURJPY is working on it the 5th day higher today.
The price reached the highest level since April 25. The pair on its way higher moved above a topside channel trendline, but has since rotated back lower.
Looking at the hourly chart, the correction lower in the US session has sent the price back down toward a swing area going back to April 19 (see red numbered circles and yellow area). That swing area comes between 138.23 and 138.321.
The low price just reached 138.20 but has bounced back higher and currently trades at 138.445. That swing area is a key barometer in the short-term. Stay above and a rotation toward the 139.19 – 139.268 would be the next target followed by the swing highs from April between 139.67 and 139.996.
Conversely Move below the 138.23 level with more selling momentum would have traders looking toward the 138.00 area
break below that level and a rotation back toward 137.53 cannot be ruled out
