EUR/JPY 1H Chart: Rising Wedge

If we connect the peaks and valleys that emerged on the hourly chart of EUR/JPY within the last 230 bars we would eventually draw a rising wedge. Still, the apex of the figure is rather far away and a change in the trend should not be immediate. Nonetheless, we should be wary of the resistance at 134.09 and especially of the support at 133.02, being that if they are breached, there is a high probability the break-out will be associated with strongly elevated volatility.

In the meantime, SWFX traders seem to be divided in their expectations—47% are long and 53% are short on EUR/JPY.