© Dukascopy Bank SA
EUR/JPY is starting to recover after a drop from 29th of June till 24th of July and has formed a Rising wedge pattern on the 4H chart. The pattern has 55% quality and 96% magnitude in the 170-bar period.
The pattern started when the pair rebounded from 101.404 and slowed down at 96.747 where the pair is currently trading. The SWFX market sentiment shows that 75% of the traders expect appreciation of the pair. Long traders could set the first target at the daily pivot/SMA200 at 97.197. If this level is breached, next targets could be set at daily pivot at 97.686 and the pattern's resistance at 98.283.
Technical indicators on aggregate point at possible further deprecation of the pair on 1W outlook indicating that the pair might experience one more month long drop. Short traders could set the first target at daily pivot 96.217. If this level is breached, next targets could be set at the pattern's support at 96.002 and daily pivots at 95.726, 95.237 and 94.746.
© Dukascopy Bank SA