EUR/JPY has formed a Rising Wedge pattern on 1H chart. The pattern has 56% quality and 96% magnitude in the 192-bar period.
The pattern started when the pair started appreciating from 97.996 after dropping from 99.035. Currently the pair is trading at 100.459. Gap between pattern’s support and resistance narrows by 125 pips in 100 bars. Technical indicators on aggregate point at augmentation of the pair on 4H horizons. The SWFX market sentiment is bullish as 54% of traders hold long positions on the pair. In addition, in the range of 100 pips from current market price, 52% of pending orders are buy orders. Long traders should focus on pattern’s high (12th of September) at 100.651, daily pivot (R1)/pattern's resistance limit at 100.790 and daily pivot (R2) at 101.158.
The Stochastic indicator send sell signal on 1D horizon suggesting that we might see a bearish correction in the near future. Short traders could set their targets at daily pivot/pattern’s support at 100.283, daily pivot (S1)/Fibonacci (23.6% of move since 5th of September) at 99.915/864 and Fibonacci (38.2%)/200 bar SMA/daily pivot (S1) at 99.507/408 .