We could foresee anytime the pressures can burst out as you can observe on the EOD charts, the price line has line reached channel resistance and leading oscillator (slow and ) has popped up divergence to the previous rallies, which would interpret this as an early signal for selling pressures in the weeks to come.
Remarkably, on daily terms has been directly proportionate to the price behavior. Currently, on 4-hourly charts showing downward convergence near overbought zones (75 levels while articulating) with the dipping prices.
The slow noises with crossover above 80s on (current %D line flashes at 87.99906). So, if the current breach sustains the existing channel resistance at 131.234 on a closing basis for consecutive days would bring in more speculation for next resistance at 129.490 levels but as of now the probabilities seems unlikely to hold this level (considering intraday sentiments).
Retrospectively, the prices have tested upper and rising momentum is weakened at that juncture while on intraday charts is likely to crossover shortly it is lagging indication to the contraction in price rallies.
Hence, keeping 128.465 in mind bears can speculate this pair downwards, but there is a clear sign of bulls creating selling opportunities for long term bears as a result of overbought pressures So overall, EUR/JPY is blistering up with heaps of indications by leading oscillators in addition.
Contemplating certain swings and abrupt brief upswings also, we recommend buying any calendar spread that takes care of certain yields regardless of swings.
FxWirePro: EUR/JPY seems weaker from hereon after reaching channel resistance –