The EUR/JPY has increased today and has managed to resume the last two day rally, has reached new highs and looks motivated to embrace new highs in the coming period. The rate has increased significantly after the retest of a major dynamic support (resistance has turned into support), technically, is expected to increase further because is located above two major support levels, most likely will approach the previous high in the previous week, where is expected to find temporary resistance, but the perspective remains bullish on the short to the medium term because the sentiment has changed after a crucial breakout.

The Yen continues to drop because the Nikkei stock index has rebounded  and now is trading much above the 19200 psychological level and looks determined to touch new highs in the coming period because the corrective phase could be completed.

The Euro has increased increased today also versus the greenback and versus the Cable, not only versus the Yen, was helped a little by the German PPI  rose by 0.4% in December, matching expectations, has come better than the 0.3% growth in the former reading period.

The price has increased today and has validated the yesterday’s breakout above the sliding parallel line (ascending dotted line) and now is approaching the 123.30 static resistance, where he could find temporary resistance again, but personally I believe that will take out this resistance and will climb much higher, the price is still targeting the upper median line (uml) of the ascending pitchfork. Technically is expected to reach the upper median line (uml) after the retest of the upper median line (UML) of the major descending pitchfork, is expected to increase after the failure to reach and retest the median line (ml) of the ascending pitchfork.

The pair remains bullish and we may have a great buying opportunity if the price will jump and will stabilize above the 123.30 horizontal resistance, could approach the 38.2% retracement level in the coming months, this scenario will take shape only if the Nikkei stock index will have enough energy to 19700 previous high.