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

After today’s upward rally of the pair EUR/JPY, which was caused by the total sale of the Japanese currency, this pair came close to the upper boundary of the lateral triangle, in which the pair is traded since the beginning of January. Also, EUR/JPY is in overbought, which limits further growth.

Significant resistance is the level of 135.80-136.10, from which it is possible to retreat with further price return to the lateral triangle. Also, in addition to reboundance from resistance for entering the sale, it is worth waiting for the price to be fixed below this level. With the return of the pair in the triangle, one should expect a support test: 134.80 and 134.40. Resistance is located on the marks: 136.30 and 136.60, the breakdown of which will cancel the scenario for strengthening.

Fig. EUR/JPY H4. Current price – 135.90

Hanzenko Anton