EUR/JPY Nice Pullback From Trendline Support Zone.

EUR/JPY nicely pullback from its trendline support zone. 128.00 was double bottom zone. But EUR/JPY broke below 128.00 and tested its trendline support area at nearly 127.50.

If today's daily candle closes a full-body bullish pattern, we can hope that EUR/JPY will test the 130.40/50 price zone very soon. 130.40/50 is an absolute strong resistance zone. Many times market-tested 130.40/50 but couldn't break it.

So, it is expected beyond price action analysis that the price will act as a strong resistance zone. But breaking above 130.40/50 will open the door for 133.--/133.20 price zone.

On the other hand, EUR/JPY breaks below the trendline support zone, we may see another knee-jerk downside pressure on EUR/JPY. EUR/JPY will only drop if the Covid situation becomes worse.

Otherwise, EUR/JPY reached its bottom price, so it is expected that the EUR/JPY may rise from the price zone.

If EUR/JPY breaks below the 127.50/30 price zone, we may go short, and the downside target will be 126.00. Breaking below the trendline support level, our long target will also be invalid.