EUR/JPY 15M Chart: Rising Wedge

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Although the current situation in EUR/JPY implies a short-term rally, just like in GBP/USD, the emerging pattern indicates growing downside risks. There is a good chance the Euro will find support circa 113.80 in order to launch a new attack on the red trend-line, but the rising wedge is a bearish pattern, and eventually the green-trend line is likely to be broken. This will pave the way for a decline down to 111.40, namely the Monday's low, although there are also potential good nearby support levels at 113.66 (200-period SMA) and at 113.41 (daily S1). The distribution between the bulls and bears in the SWFX market confirms the negative outlook, being that there are more longs (63%) than there are shorts (37%).
© Dukascopy Bank SA

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.