EUR/JPY 1H Chart: Channel Down

Not so long ago, namely 80 trading hour back, the currency pair did not manage to sustain a surge above the 200-hour SMA. After peaking at 131.99 the common currency started to depreciate, a tendency, as it turned out in the end, that was guided by two falling trend-lines. Given many confirmations of these boundaries, we may expect the market to continue respecting them in the future. The upper line is currently standing at 129.52 together with the daily R1, while the lower one is limiting possible losses at 128.14. Technical indicators on a 4H time-frame are also in favour of this formation by giving ‘sell' signals.