EUR/JPY 4H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
The EUR/JPY currency pair has been generally declining since the beginning of this year; however, the current channel down pattern has been formed relatively recently, namely on July 3. Despite trading in the upward correction right now, the pair is likely to decline even more in the longer term, as the majority of daily and weekly technical indicators point to the downside. Moreover, market sentiment is strongly bearish, with almost 61% of the current opened positions being short. Therefore, we anticipate that the nearest resistance level at 137.62 (upper trend line, 200-period SMA) will not face major hurdles in sending the pair lower.
© Dukascopy Bank SA
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