EUR/JPY was consolidating during the last 173 bars, forming a Rising Wedge pattern on 4H chart. The formation has 76% quality along with 66% magnitude.
The price slowed near its support level around 109.23 and tried to break it, but failed to do so. Pair was trading in a tight range after testing the level and now it has a possibility to get back into initial area. If the price increases, the possible short-term target for bulls might be set around 111.25 where the previous local high stands.
The RSI indicator does not show bulls' strength, which leads to the possible price depreciation resumption. If the breakout continues, bears can focus their attention on the key level around 108.57, the previous breakout's low. The forecast targets for short traders could be around 107.53 and 105.64.