FX.co ★ EUR/JPY Intraday Technical Analysis

The spot rate is currently testing the intermediate resistance of its medium-term bearish channel at 101.20. It seems that a decline was initiated. However, a break of these levels will free a large potential and reach the upper limit of its channel at 102.00.
Technical indicators do not provide clear signals and until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have stabilized showing a more regular volatility.
The spot rate is currently testing the intermediate resistance of its channel, we suggest 2 scenarios. The first one is the hypothesis of a decline where we recommend a sell on the level of 101.20 with the 1st objective at 100.60 and then at 100.40. A breakthrough of 101.40 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy the spot rate as soon as it is broken through its resistance of 101.20 with the 1st objective at 101.80 and then at 102.00. A breakthrough of 101.00 will invalidate this scenario.