EUR/JPY enters into symmetrical triangle

In accordance with one of the scenarios described on Friday, the EUR/JPY ended the previous trading week in a limbo between the weekly S1 and PP. An existence of this clipper, in turn, has led to formation of a symmetrical triangle. In theory, the currency pair might leave this formation in both directions. However, the last two trading days showed that the pair has made five attempts to break to the top. Nevertheless, all of them were blocked by the 55-hour SMA. This barrier in addition to the sliding 100-hour SMA suggests that the rate will keep moving downwards until the weekly S1 at 128.15. But even if the pair breaks from the pattern in the northern direction, the surge most probably is going to be neutralized by the weekly PP and the 200-hour SMA at 129.46.