Cross-rates signals: cross EUR/JPY remains in the channel

After unjustified expectations for working off the “double bottom” figure, the EUR/JPY cross-rate returned to the expanding channel. This movement of the pair was partly caused by the persistence of fears for the eurozone and Germany. Also, almost a three-month channel was not broken.

Therefore, after a small recovery of the euro to the levels of 182.80-183.00, one should expect a resumption of the decline with the targets: 131.80-132.00 and 131.40-00. Considering the oversold of the pair and the dependence on sentiment, one should enter sale deal only after correction and confirmation of signals for sale.

EUR/JPY H4 chart. The current price is 132.50.

Hanzenko Anton