EUR/JPY extended its downtrend move forming a Falling wedge pattern on the 1H chart. The formation has 65% quality and 47% magnitude in a 137-bar period.
The price recovered from the support level around 102.75, then tested it at 102.22 and soared to the 102.87. RSI indicator during all the downtrend is shows that the pair is oversold, which increase the possibility of pair's recovery. If the trend changes, bulls might focus their attention to the resistance level around 102.51. If the price breaches this level, the initial target for long investors could be around 102.86, where the previous local high resides.
Pair's bias is bearish on hourly and daily timeframes, while on the 4H chart it remains neutral. SMA200 indicator was decreasing during last 137 bars, which supports the idea of downtrend extension. If the price decreases, the first target for bearish traders might be around 101.82, where five-month low stands.