Ella 
The EUR/JPY ended the day up 0.47%, bouncing off the day’s low of 156.98.
Technical indicators suggest that the EUR/JPY may rise towards the 12th of October highs.
Against the backdrop of improving market risk sentiment, the EUR/JPY is testing the top of the Ichimoku equilibrium chart (near 157.80) and will form a bullish engulfing pattern. At the time of writing, the EUR/JPY is up 0.47% after bouncing off the day’s low of 156.98.
From a technical perspective, the EUR/JPY is still consolidating and is likely to break above the top of the Ichimoku cloud and then test the October 12 high of 158.61. A break of this area would open the door to a challenge of the year-to-date (YTD) high of 159.76.
On the downside, if the EUR/JPY bears step in, the first level of support will be the conversion line at 157.21. If EUR/JPY breaks below this level, the next level of support will be the B-band at 157.05 and then a challenge at 157.00. A break below these levels would see EUR/JPY test the bottom of the Ichimoku cloud at 155.60/65, followed by the October 3rd swing range low at 154.34.
