Yesterday afternoon, EUR/JPY based at 109.56 and it then rallied over 200 pips to 111.90. This morning the pair based at 109.80 and has now rallied over 170 pips from there, and mayn’t be finished yet. The overall bear trend is still intact but we can expect large short-covering rallies in these illiquid and volatile markets.
Next technical resistance of note is a 38.2% retracement level and a previous low, which comes in at 112.35.