Forex: EUR/JPY uptrend reinforced; 125.00 target eyed

EUR/JPY longs was definitely the play of the day on Thursday, after the pair's breakout of 122.20 contentious resistance produced a 230+ pips rally taking the spot near the initial liquidation point from Feb 25 at 124.50.

The rise in the Euro today cements the belief that the pair is back in a well-established uptrend, with the break of a descending trendline coming from 127.75 high reinforcing the vision of more upside potential.

Key resistances going forward coincide with round numbers, with 125.00, Feb 25 high, followed by Feb 15/20 double top just shy of 126.00, next is 127.00, aligning with the two shoulders of a H&S structure from Feb, and finally the year's peak at 127.50.

According to Valeria Bednarik, chief analyst at FXstreet.com: "In bigger time frames, the upside is favored with indicators heading higher in positive territory, with buying interest probably aligned now in the 123.50/60 price zone."