EUR/JPY currently trading well above the 50-EMA, radiates its bullish condition. But at the same time, as outlined from an hourly perspective, it has shrunk its intraday volatility to a minimum not seen for over a week of trading.
There is potential for extra pips to be offered to traders in the basket of the bull, but attention should be paid to the parabolic SAR indicator: the SAR has been trailing the ascent move for more than 16 consecutive hours and could reverse direction at any moment, offering a signal to liquidate longs.
This technical condition is usually associated with the formation of gently upward sloping channels.
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