FX.co ★ EUR/JPY Intraday Technical Analysis

The spot rate is currently testing the upper limit of its medium-term bearish channel at 102.30 suggesting a decline. However, a break of these levels will initiate a 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 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 upper limit 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 102.30 with the 1st objective at 101.70 and then at 101.50. A breakthrough of 102.50 will invalidate this scenario. The second scenario is a break of its resistance where we recommend a “buy stop” which means to buy the spot rate as soon as it is broken through its resistance of 102.30 with the 1st objective at 102.90 and then at 103.10. A breakthrough of 102.10 will invalidate this scenario.