The EUR/JPY currency pair has been trading in a medium-scale triangle pattern since the beginning of August. The pair bounced off its bottom border on August 6 and reached upper boundary yesterday.
A strong resistance cluster set by the combination of the 55-, 100– hour SMAs and the monthly pivot point near the 128.85 was providing a resistance for the exchange rate.
Given that the currency exchange rate has moved closer to the lower border of the medium-scale triangle pattern, a breakout is likely to occur during the following trading session.
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