EUR/JPY 1H Chart: Rising Wedge

Pair has been narrowing it's trading range since the beginning of October. It was 230 pips then and ahs been around 30 pips lately. 134.95 was reached in the middle of September and has been  the highest level the pair has reached since the end of 2009. It works as a good long term target in the ranks of this pattern. It is very important as short and medium term technicals point at further appreciation of the pair. Long term technicals, however, give neutral outlook. In addition to this Stochastic indicator points at a sell off of the pair. It suggests that 135 JPY might cause significant bearishness on the pair.