EUR/JPY has been trading in a tight range during last few days, forming a rising wedge pattern. We already observed this pattern on March 30, when the price was fluctuating near the resistance around 108.75. At present the formation has 75% quality and 69% magnitude in a 95-bar period.
The pattern entered its final phase, and is soon expected to breach either resistance at 112.01 or support at 109.51. In comparison to our previous review, the pair bounced off the support level at 108.75, recovered to 111.11, and fell to 109.91. Currently the price is fluctuating around 109.88 near the pattern's support level. If the price recoils from the support level, the first target for long investors could be around 111.29 where the price was previously capped.
The Stochastic indicator decreased after it had touched the 80% level, and now is around 60%, which may lead to pair's decrease. If the pair drops, the forecast target for short-traders could be around 108.75.