EUR/JPY Bulls Circle as BOJ Decision LoomsEuro / Japanese YenFOREXCOM:EURJPYFOREXcomith the price coiling within a structure resembling a bull pennant, and with signs momentum may be starting to turn, traders should be alert to the risk of a bullish breakout and retest of the April highs in EUR/JPY. After a strong rebound from the swing low set in late March, the pair has spent much of the past fortnight consolidating in a compression pattern characterised by a series of higher lows and lower highs on the H4 chart. After grinding higher late last week, the price now finds itself testing the downtrend running from the high set on April 17. Should we see a clean break of this level, it may be enough to encourage fresh longs, putting 187 and 187.30 on the immediate radar given both have acted as support and resistance over recent weeks. A push above the latter would likely see bulls hone in on 187.95. It screens as an appropriate trade target for those looking to act upon a possible bullish breakout. A stop beneath pennant support would provide protection against reversal. While still neutral for the moment, the message from the oscillators suggests momentum may be starting to shift back in favour of the bulls. RSI (14) had been trending lower over recent weeks but has since broken higher to sit at 50. MACD has also crossed the signal line from below but remains marginally in negative territory, suggesting at the very least the downside strength evident over the past fortnight is fading. Should this trend persist, it would favour long setups over shorts. Good luck! DS