EUR/JPY Rally - Head and Shoulders Bottom Reversal Pattern

[GCAM]

Euro Event Summary
The Euro is in rally-mode against the Japanese Yen as the EU's has promised a contingency plan to greatly reduce the immediate threat of a Greek default.
The plan states that the EU would provide bilateral loans to Greece and that the IMF would assist if there is no other option.
However, the plan doesn't state which circumstances must exist in order for aid to be provided.
In addition, not every member country has agreed to the assistance, and no interest rate has been determined for these loans.

So, these loans still remain theoretical for now.

Technical Analysis - Euro vs Japanese Yen (see chart)
This pair is pushing to reverse it's previous down-trend. We see strong resistance in the 125.50-75 range.
Technically, the reversal could come in the form of a H&S Bottom with the current FX rate testing the neckline.

A sustained break above 125.50-75 range would be enough confirmation for us to target the next major resistance zone of 127.00-127.15.
A sustained break above the 127.00-15 resistance zone would confirm us a target to the minimum measured move area of 130.00-15.



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