EUR/JPY forms a triangle

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 43% 41% 4.65%
Shorts 57% 59% -3.51%
Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Buy
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Buy Buy Buy
SAR (0.02; 0.2) Buy Buy Buy
Aggregate

For two days in a row the EUR/JPY has been fluctuating around the upper-trend line of a descending channel. Yesterday's trading session led to the creation of a symmetrical triangle, which is about to break down. Most probably, the breakout is going to happen upwards, as the rate experiences pressure from the combined support formed by the 20-, 55- and 100-hour SMAs. If such scenario comes true, the surge of the pair should not exceed the 124.44 mark, due to the presence of another channel line. On the other hand, the downfall might occur as well, because the above support level proved to be not very strong barrier. In such scenario, the fall of the rate most likely is going to be limited by the monthly PP at 123.90.

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