FX.co ★ EUR/JPY Intraday Technical Analysis

The spot rate is currently testing the upper limit of its medium-term bullish channel at 112.60 suggesting a decline. However, a break of these levels will initiate a more violent bullish channel.

Technical indicators do not provide clear signals but, until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in a short term.

The spot rate is currently testing the upper limit of its channel, so we recommend 2 scenarios: the first one is the hypothesis of a decline, then we recommend a sell at the level of 112.60 with the 1st objective at 112.00 and then at 111.80. A break through 112.80 will invalidate this scenario. The second scenario is a break of its resistance, then we recommend a “buy stop”, which means to buy at the spot rate as soon as it breaks through its resistance of 112.60 with the 1st objective at 113.20 and then at 113.40. A break through 112.40 will invalidate this scenario.