The euro is starting to breakout against the Japanese yen currency, following news that the Bank of Japan may downgrade its inflation expectations. Lower time frame analysis shows that a bullish breakout from an inverted head and shoulders pattern is in progress while the pair trades above the 130.60 level. According to the overall size of the pattern, the EURJPY pair could rally towards the 132.00 area.
The EURJPY pair is only bullish while trading above the 130.60 level, key resistance is found at the 131.40 and the 132.00 levels.
If the EURJPY pair trades below 130.60, sellers may test the 130.00 and 129.30 support levels.
