Cross-rates signals: EUR/JPY is near significant resistance

After repelling of the cross EUR/JPY from the support level of 131.40-00, this cross is trading in different directions, justifying partially the expectations for this pair. At the moment, the pair after the opposite direction, remains near the significant resistance of 133.30-60, which corresponds to the upper limit of the descending channel from the October maximum.

Considering the significant overbought of the euro and the safety of the downward channel from the level of 133.30-00, one should expect the formation of a downtrend. It will be limited by support levels of 132.40-50 and 131.60. In the case of breakthrough of the resistance zone 133.30-60, the scenario for the reduction is canceled, and the way to the resistance levels will be opened: 133.80-134.00 and 134.40.

EUR/JPY H4, current price – 133.00.

Hanzenko Anton