Technical analysis for the EUR/JPY, the pair reached strong support at 127.95, the previous double bottom on the daily and weekly chart, and bounced from it. If the bears manage to send the EUR/JPY below 127.95, it will open the door for a bearish run toward first, the monthly 50 EMA, the 0.618 FIB, and the 0.386 retracements on the monthly chart around 126.35-60. The second target for this potential bearish breakout is the 1.272 FIB extension at 125.55, and the third target is the 1.618 FIB extension at 123.40.
On the other hand, if the current pullback on the daily chart for the EUR/JPY pair breaks above the resistance and 0.618 FIB retracement at 131.00, it will open the door for a bullish run toward the previous high at 133.48. If the EUR/JPY pair breaks above 133.48, it will be an early signal for resumption of the bullish monthly trend, and it will send the pair higher toward 1.272 FIB extension at 137.70.