TechnoMeter

The current price action formation on the daily chart of EUR/JPY is a descending wedge, and this can be found by connecting the swing high on March 31st with the swing high to April 27th to define resistance; while that confluent support zone between 121.50-122.50 continues to stem the declines. This support has held for the better part of three-and-a-half months; and at this point traders would likely want to see a concerted break before looking for down-trend continuation setups.



To look for the next directional move, traders can use recent price action to devise strategy. The recent swing-high reflected off of the 38.2% retracement of the most recent major move at 124.04; and should price action break above this level traders can then begin assigning top-side approaches to EUR/JPY. While support at 121.50 (121.47 to be exact to the pip) has been the bottom-side of this recent support zone; and traders will likely want to see this begin to give way before assigning down-trending biases to the pair.


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