FX.co ★ EUR/JPY Intraday Technical Analysis

The spot rate is currently testing the intermediate support of its medium-term bearish channel at 100.80 suggesting a rebound. However, a break of these levels will free a large potential and reach the lower limit of its channel at 100.30.

Technical indicators do not provide clear signals and until the support is not broken, the assumption of a rebound is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.

The spot rate is currently testing the intermediate support of its channel, we suggest 2 scenario: the first one is the hypothesis of a rebound where we recommend a buy at the level of 100.80 with the 1st objective at 101.40 and then at 101.60. A breakthrough of 100.60 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means selling the spot rate as soon as it is broken through its support of 100.80 with the 1st objective at 100.20 and then at 100.00. A breakthrough of 101.00 will invalidate this scenario.