EUR/JPY 1H Chart: Channel Up

Just recently EUR/JPY has fully pared the losses made on Nov 7—it took the pair 60 hours. During this recovery the currency pair has been respecting two rising trend-lines that are now the boundaries of the channel up pattern. The upper edge is currently at 133.71 and the lower one is at 133.33.

Considering the technical indicators on the hourly and four-hour charts, the singly European currency is likely to maintain its upward course. However, this pattern is unlikely to stay intact for long, being that it is narrow (40-50 pips wide) and the currency pair is approaching a formidable resistance level represented by the October 30 high at 135.47.