EUR/JPY 4H Chart: Falling Wedge

After EUR/JPY broke out of the triangle it was forming the first four months of this year, it started fluctuating between two converging trend-lines. This means there is an increasing risk of a break-out to the upside. However, there is a number of strong resistances lying overhead that could halt appreciation of the Euro. The first obstacle stands at 138.72, where the weekly PP merges with the 200-period SMA. The next one will be the upper boundary of the falling wedge at 139, followed by a cluster of resistances at 139.33, consisting of the weekly R1 and Jul 3 high. Meanwhile, there are no bullish hints from the technical indicators, as most of them are currently giving ‘sell' signals.