EUR/JPY Technical Analysis: Clocks 12-day high above 125.00, upside favored on flag breakout

The EUR/JPY cross jumped to 125.20 a few minutes before press time, the highest level since March 22. The US-China trade optimism and the resulting rise in the Asian equity markets is likely weighing over the anti-risk JPY.

With a move above 125.00, the pair has confirmed a flag breakout on the 4-hour chart, a continuation pattern, which usually accelerates the preceding bullish move. As a result, the pair could rise further towards 126.00 (target as per the measured move method).

Supporting the bullish case is the 4-hour chart relative strength index (RSI), which is currently reporting bullish condition with an above-50 print.

The bullish setup would be invalidated if the pair falls back below 124.61 (low of the previous 4-hour candle). As of writing, the pair is trading at 125.08.