- The break of the neutral triangle will result in an expansion of volume and tick size.
- A bearish range shift by the RSI (14) is indicating more downside ahead.
- The violation of horizontal support placed from 136.56 has triggered the downside bias for a shorter period.
The EUR/JPY pair has displayed a less-confident pullback after printing a fresh three-day low of 136.40 on Monday. The cross has recovered minutely to near 136.76, however, the downside remains favored as the asset has violated the horizontal support placed from Thursday’s low at 136.56.
On an hourly scale, the asset is auctioning in a symmetrical triangle that signals for slippage in the volatility followed by an expansion in the same. An expansion in volatility results in wider ticks and heavy volume. The upward sloping trendline of the above-mentioned chart pattern is placed from the August 2 low at 133.40 while the downward sloping trendline is plotted from the August 10 high at 138.40.
The 20-and 50-period Exponential Moving Averages (EMAs) at 136.68 and 137.10 respectively are expected to overlap with each other, which will result in consolidation ahead.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates more downside ahead.
Should the asset oversteps the round-level resistance of 138.00, the shared currency bulls will drive the asset towards July 29 high at 139.51. A breach of the July 29 high will send the cross towards July 18 high at 140.80.
On the flip side, the yen bulls could gain control if the asset drops below the August 4 low at 135.64. An occurrence of the same will drag the cross towards the previous week’s low at 134.90, followed by an August 2 low at 133.40.
EUR/JPY hourly chart
-637968082924243802.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD rises above 1.0850 while remaining in overbought territory
The EUR/USD pair gains ground for the third successive session, trading around 1.0860 during the Asian hours on Tuesday. A technical examination of the daily chart indicates a bearish breakout as the pair breaks below an ascending channel pattern.
GBP/USD maintains position near 1.2900 as concerns over US economic growth persist
The GBP/USD pair recovers recent losses from the previous session, trading around 1.2890 during Asian hours on Tuesday. The pair edges higher as the US Dollar struggles amid concerns that tariff policy uncertainty could push the US economy into recession.
Gold price sticks to modest intraday gains amid weaker risk tone; remains below $2,900
Gold price rebounds from a one-week low and draws support from a combination of factors. Global trade war fears and geopolitical risks continue to underpin the safe-haven commodity. Fed rate cut bets keep the USD depressed and further benefit the non-yielding XAU/USD pair.
The crypto market cap dips to $2.44 trillion while Mt. Gox moves 11,833 BTC worth $932 million
The crypto market continued its ongoing downleg as the week started, as its market cap capitalization reached a low of $2.44 trillion on Tuesday, levels not seen since early November.
Gold price sticks to modest intraday gains amid weaker risk tone; remains below $2,900
Gold price rebounds from a one-week low and draws support from a combination of factors. Global trade war fears and geopolitical risks continue to underpin the safe-haven commodity. Fed rate cut bets keep the USD depressed and further benefit the non-yielding XAU/USD pair.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.