EURJPY: Rollercoaster continues

The EURJPY cross rallied sharply on Thursday, then dropped even more sharply on Friday, and Monday has brought aggressive buying again.

Thus, the cross was up 1% during the US session, changing hands at around 126.50.

Bears will be defending last week's highs near 126.80, and if this level is broken to the upside, the medium-term uptrend will most likely be confirmed. The next target could be at 127.50, where lows from Autumn 2018 are converged with highs of this year's Spring. 

However, it looks like the current bullish momentum is really strong. Therefore, the ongoing rally might push the price to the psychological level of 130 over the next weeks. 

Alternatively, the support now seems to be at the bullish trend line from May's lows near 125.00. Failing to hold this level should lead to a larger correction as stop-losses of longs would be hit.

Another demand zone could be spotted at around 124.50, where previous highs and lows are converged. The euro is expected to continue rallying against the USD, which should keep this cross bid. 
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