Cross-rates signals: EUR / JPY in anticipation of double-top

On the cross-rate EUR / JPY on the day timeframe a figure “Double top” was formed, which is limited to the level of the neck in the zone of 131.40-00. Due to the not clear formation and previous dynamics of the pair, this zone acts as a neck zone with a further possibility of reduction, and as a support zone, from which it is possible to repel.

Therefore, two scenarios are considered. The first is to break the level of the neck and work off the figure “double top”. With further goals: 133.50, 129.80 and 129.30. Alternative (the second option) – to break the cross from the lsupport level 131.40-00 and resumption of growth to resistance levels: 132.60-70, 133.30 and 133.80. Additional uncertainty renders the fact that this cross is near three-year highs, that has an ambiguous effect on the dynamics of the pair.

Recommended for reading: Cross-rates signals: EUR / CHF in the purchasing zone.

Hanzenko Anton