Cross-rate signals: EUR/JPY is traded in an expanding formation

The cross-rate EUR/JPY remains in the expanding formation for the second week, forming a kind of triangle. At the same time, weak data on the UK GDP significantly increased the pressure on the pair and returned it to significant support at the level of 131.90-132.00.

In the conditions of this model of movement and considerable oversold of the EUR/JPY pair, one should expect a repulsion from the level of 131.90-132.00. In this case, it is necessary to take into account the persistence of negative sentiments about the pound and consider buying from the level of 132.20-30, a return of the price above which will open the way to resistance levels: 132.60 and 133.00-30. Break through the support of 131.60-50 cancels the expectation for strengthening of the pair EUR / JPY.

Fig. EUR/JPY H4. The current price is 131.90.

Hanzenko Anton