EUR/JPY 1H Chart: Channel Up

The single European currency may be broadly bearish, but it nonetheless continues to outperform the Japanese Yen, as evidenced by the channel up pattern on the hourly chart of EUR/JPY. The rally started from the level of 136.21 on Feb 4, which is the 61.8% Fibonacci retracement of the November-December up-move. Judging by the near-term technical indicators, this upward tendency is likely to remain intact. However, SWFX traders are presently undecided with respect to the future of the pair—55% are bullish and 45% are bearish towards it. The strength of the upward momentum will most likely be tested at 141.30, the resistance implied by the Jan 28 high.