EUR/JPY 4H Chart: Channel Down

There are several factors that are increasing the probability of a steeper decline of the Euro against the Japanese Yen in the long-term. Two weeks ago the 100-period SMA crossed the 200-period SMA to the downside, just before EUR/JPY bounced back from the upper edge of the pattern. Additionally, the exchange rate has recently consolidated below the 55-period SMA. The current nearest target is weekly/monthly S1 at 133.26. A close beneath this mark will pave the way towards the pattern's support at 131.46. Nonetheless, weekly technical indicators are bullish at the moment, while market sentiment is completely undecided on the perspectives of this currency pair.