CORRECTION - EUR/JPY up over 2%, will lower highs be printed?

EUR/JPY carved out a bottom sub 123.50 early in the last European session to currently float 300+ pips higher at 126.50, with the last 2h spikecourtesy of Treasury's Mr. Brainard headlines - putting into question the failure of the uptrend.



Following yesterday's early evidence that, from an order flow perspective, the latest EUR/JPY may be the onset of a more meaningful correction in what appeared to be a market close to reach exhaustion/climax levels, the bullish tone recovery may potentially jeopardize the formation of a potential lower high, a technical pre-requisite which would raise odds for further short term downward pressure. The sharp appreciation today, almost 2%, now targets last week's 127.7 trend high. On the downside, 126.00 - Feb 6,7 swing low - followed by 125.50 - Feb 7, 8 swing high - should see buying interest emerging.