EUR/JPY trades lower at the time of this post. We are currently at 128.46 and have just broken out of a flag pattern (a bullish move).
We have the convergence for the continuation move. We are looking for an initial move to the average true range (ATR) target at 129.02 with a continuation to the 0.214 Fibonacci level at 129.19.
Watch the DXY for any change in direction. The ATR for the pair currently is 89 pips per day and its 180-day average is 80 pips.