EUR/JPY Price Analysis: Hits highest since December 2018, eyes 61.8% Fib hurdle

• EUR/JPY rises to multi-year highs, marking a strong follow-through to Monday's breakout. 
• The daily chart indicators suggest scope for further gains. 

EUR/JPY has crossed above 128.00 to hit the highest level since December 2018, having confirmed a symmetrical triangle breakout – a bullish continuation pattern on the daily chart – with a 0.55% gain on Monday.

The breakout is backed by an above-50 or bullish reading on the 14-day Relative Strength Index. The MACD histogram, an indicator used to identify trend changes and trend strength, is producing higher bars above the zero line, indicating a strengthening of the upward momentum. 

The 5- and 10-day Simple Moving Averages are trending north, indicating a bullish setup.

As such, the pair looks set to test resistance at 128.68 – the 61.8% Fibonacci retracement of the sell-off from 137.51 to 114.40. 

A break below the higher low of 126.10 created on Feb. 4 is needed to confirm a reversal lower. 

Daily and weekly charts

Trend: Bullish

Technical levels