FX.co ★ EUR/JPY: inverse Head & Shoulders in progress

The EUR/JPY pair seems undecided in the short term. It has moved sideways but the narrow range could be over soon. It was located at 139.20 at the time of writing. Fundamentally, the JPY remained strong even if the Flash manufacturing PMI and the SPPI came in worse than expected during the week.

Tomorrow, the Japanese Monetary Policy Meeting Minutes could bring high action in the early morning. Furthermore, the German Gfk Consumer Climate and the ECB President Lagarde could have an impact as well.

EUR/JPY Trading In The Red!

Technically, the pair developed a potential Inverse Head & Shoulders pattern. Still, as long as it stays under the downtrend line, it's premature to talk about an upwards movement.

It's trapped between 139.52 and 138.70 levels. Escaping from this minor range could bring fresh trading opportunities and a clear direction in the short term.

EUR/JPY Forecast!

Jumping, closing, and stabilizing above the downtrend line and through 139.52 activates a swing higher and brings long opportunities.

On the other hand, staying below the downtrend line and making a new lower low opens the door for a deeper drop.