FX.co ★ jerome82 | EUR/JPY

EUR/JPY. Good afternoon. Euro/Yen has finally updated the local high today, but bears immediately entered the fight. It can’t be said that they have seized the initiative, but I don’t rule out such a scenario. Technically, on the hourly chart the indicators are still pointing north, but here we see signals changing direction without activation and without follow-through. This behavior is typical for a range, something similar to what we are seeing on the chart now. So in the short term we can still see a move down to about 186.10-20. On the 4-hour chart the indicators continue to point north, and the pair has now come to test the middle Bollinger band from above. And here, depending on a breakout or a bounce, the further bias will be shown more clearly. I’m more inclined to the scenario with a breakout and a decline, especially since the lower indicators are hinting at this, having drawn bearish divergences. But in any case, it’s worth waiting for the result of the test. And it’s clearly too early to talk about a major reversal to the downside.