In the middle of the EUR/upswing, JPY's an ascending triangle pattern is firstly developing.
The pair is now attempting to break through the triangle resistance while debating whether to bounce. So where might it go from here?
Moving averages are pointing to a probable bullish breakout, thus technical indicators are now showing mixed results. If that occurs, EUR/JPY might have a rally that is around 200 pip in size, which is the same size as the formation.
The oscillator moving south might bring the pair back down to the triangle support at 144.50, although Stochastic is signaling overbought circumstances.
Although a breakdown might occur under more intense negative sentiment, the 200 and 100 SMA dynamic support levels are close to the bottom, adding to the floor's resilience.
If you're trying to go for a bullish break, just make sure to keep an eye out for lengthy green candlesticks closing over the 145.50 minor psychological barrier.
