EUR/JPY 4H Chart: Rising Wedge

The pattern started when the pair bounced from 101.404 and slowed down slightly above SMA200 at 97.158 where the pair is currently trading. Technical indicators point at appreciation of the pair on 4H and 1D time horizons. The SWFX market sentiment shows that a bit more than two thirds of traders expect appreciation of the pair as well. Long traders could set the first target at the recent peak at 97.476. If this level is breached, next targets could be set at daily pivots at 97.571 (R1) and 97.984 (R2) and the pattern's resistance at 98.228.

Technical indicators on aggregate point at deprecation of the pair on 1W outlook indicating that the pair might experience one more month long drop as it did in July. Short traders could set the first target at daily pivot (PP) at 97.063. If this level is breached, next targets could be set at the SMA200 at 96.956 and daily pivots at 96.650 (S1) and 96.142 (S2).