FX.co ★ EUR/JPY Intraday Technical Analysis

The spot rate is currently testing the lower limit of its medium-term bullish channel at 102.10 suggesting a rebound. However, a break of these levels will free a large potential and initiate a violent bearish channel.
Technical indicators provide sell signals, but until the support is not broken the assumption of a rebound is most likely. Bollinger bands have stabilized showing a more regular volatility.
The spot rate is currently testing the lower limit of its channel, we suggest 2 scenarios. The first one is the hypothesis of a rebound where we recommend a buy on the level of 102.10 with the 1st objective at 102.70 and then at 102.90. A breakthrough of 101.90 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means to sell the spot rate as soon as it is broken through its support of 102.10 with the 1st objective at 101.50 and then at 101.30. A breakthrough of 102.30 will invalidate this scenario.