EUR/JPY enters new channel up

In accordance with technical theory, the EUR/JPY left the descending triangle downwards despite the barriers set up by the 55- and 100-hour SMAs. However, the downside momentum was neutralized at the 2016 high level at 128.80. Afterwards, the currency rate resumed an abrupt surge and in the early morning set a new record high at 129.06. On a larger scale it easy to note that the current week's shift to the right depicts formation of a new channel up. Accordingly, the pair is expected to continue the rise until it reaches the upper trend-line of the formation near the 129.25 level. If no fundamental changes will happen, the pair should made a successful rebound as well.