Gains Considered Corrective

• RES 4: 132.04 76.4% retracement of the Oct 20 - Dec 3 downleg
• RES 3: 131.80 High 2.0% 10-dma envelope
• RES 2: 131.60 High Jan 5 and the bull trigger
• RES 1: 131.50 High Feb 03
• PRICE: 131.26 @ 17:13 GMT Feb 3
• SUP 1: 128.38/25 76.4% of the Dec 3 - Jan 5 upleg / Low Jan 25
• SUP 2: 128.05 Low Dec 21
• SUP 3: 127.39 Low Dec 6 and a major support
• SUP 4: 127.04 Low Feb 15, 2021

EURJPY snapped higher following the ECB decision, taking out several nearby supports on the way to 131.50. This cements the recent rally, and erases concerns that strength since the beginning of the week has been corrective in nature. Major resistance at the Jan 5 high of 131.60 is next up, and strength through here would pull the bull trigger on the way toward new 2022 highs. On the downside, price recently probed 128.38, a Fibonacci retracement. A clear break of this level would return to bearish conditions and expose 127.39, Dec 6 low and a key support.