FX.co ★ EUR/JPY Intraday Technical Analysis

The spot rate is presently testing the lower limit of its medium term bearish channel in 106.00 indicating a prospect a rebound. However, a breakdown of these levels will reveal significant potential entailing a bearish channel more violent.

Technical indicators provide signals for Buy-deals and approaching the oversell zone confirms the possible rebound. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.

According to previous events, the market indicates a bullish opportunity on the levels of 106.00 with 1st objectives 106.60 and 106.80. A breakdown in 105.80 will cancel the possible this scenario.