The movement south was guided by the weekly R1 at 137.45. The exchange rate is likely to breach the lower boundary of the dominant channel before the end of Friday’s trading session.
The decline for the pair could continue until it finds support at the monthly at 131.11. Also, technical indicators suggest that the EUR/JPY pair is in the oversold zone; thus, a reversal north is likely during the following trading sessions.
The currency exchange rate has started gaining some of its lost points during the second half of Monday and could likely breach the upper boundary of a dominant channel.
However, the surge might find a resistance cluster set by the combination of the 100-hour simple moving average and the weekly pivot point near 131.81. Traders should look for opportunities to trade if the aforementioned scenario occurs.
The previously described scenario on Thursday regarding the EUR/JPY had occurred. A support set by the weekly pivot point near 129.78 proved to have enough strength to stopped the rate from declining further.
Given that the currency exchange rate remains trading inside the junior pattern, a breakout is expected to occur during the following trading session.
Technical indicators are in favour of bearish pressure that could dominate the rate today. Traders should look for opportunities to trade if the aforementioned situation happens.
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