EUR/JPY 4H Chart: Descending Triangle

Since the Euro has been in a long-lasting decline against the Japanese Yen, its outlook remains overwhelmingly negative. Moreover, by building the descending triangle pattern this cross is showing that the trend is largely biased down. The near-term growth, however, is fully on the table, as also estimated by technical signals on a 4H time frame. The rally should extend through the 125.72 level, the present location of the red boundary of the pattern. The most formidable support is represented by a number of local minimums at or above 121.50. If this one fails at any point of time in the mid-term, then EUR/JPY will be expected to lose extra value towards the monthly and weekly S1s at 120.25/14.