FXstreet.com (Barcelona) - The incessant appreciation on EUR/JPY continues to stun market participants, after the pair recorded fresh cycle highs at 123.70 and is currently pressing near-by at 123.58. One should go as far back as May 2010 to see the same levels printed. Since July 2012 up until now, the pair is up over 3,000 pips or +32%.

From a daily perspective, the text-book stepping formation continues at its own steadfast pace, with prices trading above a 45º 20-day EMA since past November 15, which strengthens the notion of buying euphoria.

In favour of long plays it can be observed how during the rally maturity, the widest distance between highs and the 20-day mean has been about 620 pips on Jan 14, which implies potential chance for further rises if history is any indication. Besides, the clean breakout of 123.00, April 10 2010 high, with buying from start of NY until the next close, strengthens case for bullish bias to be sustained. Traders should also notice Japan risk headlines, with any mention of Yen levels or easing references fueling the trend.

As FXWW founder Sean Lee notes, "I think I may have to be very careful in trying to pick a top here, it certainly looks at the moment as if the trend is about to accelerate..."

For the aggressive-type of traders, upward dynamics are being commanded by an ascending 20EMA on the 30m chart, which is supporting prices around 123.60. Clear protection for buyers should be found at 123.00 round number, while the next ambitious target the market may project may be taken at a level as expensive as 125.00, Feb 2010 box highs.