EUR/JPY 1H Chart: Rising Wedge

In the past 270 bars, while the currency pair was trending upwards, the trading range of EUR/JPY was reduced two and a half times, meaning that the price formed a rising wedge on an hourly chart.

Usually such a set-up implies a substantial sell-off in the future, something that is already taking place, since the up-trend line at 131.89 was violated after a series of subsequent attempts to breach it. Right now the price is taking a break just below the 200-hour SMA, but there is a high possibility of the nearest supports, namely at 130.89 and 130.32 being broken during the next few trading days.