EUR/JPY acting as expected

The recently discovered now dominant channel up pattern on the EUR/JPY currency pair’s charts has been once more confirmed. Moreover, the expected decline of Tuesday occurred exactly as forecast by our analysts.

However, let us concentrate on the future. The currency pair has surged after the confirmation of the dominant channel’s support and broken the previously active descending junior pattern. Although, the surge had ended by the middle of Wednesday, as the rate had bounced off the previous high levels.

In regards to the near future, Dukascopy analysts expect the pair to reveal a new junior ascending pattern.

Comment:

The Euro has booked a new high level against the Japanese Yen. This event was expected.

However, Dukascopy Analysts initially expected the rate to reach for the 133.17 mark before retreating. Instead the pair has revealed a resistance line, which can be seen by connecting the recent high levels.

Meanwhile, the pair is still expected to reach the weekly R1 at the 133.17 level. The reason for that is that the pair will still be pushed higher by the 55 and 100-hour simple moving averages.

Comment:

The common European currency has retraced from the previous high levels against the Japanese Yen. In fact the rate had reached the lower trend line of a long term ascending channel pattern.

Due to that reason on Friday the main attention was exactly on that trend line. If it gets passed the next target would be near the 132.15 mark, where a pivot point was located at.

Meanwhile, the pair faced various moving resistance levels, which were barring it from resuming the previous surge.

In addition, note the highly increased hourly volatility of the pair.