EUR/JPY is trending down inside the high Clarity Down Channel chart pattern identified by Autochartist on the daily charts. Autochartist rates the overall Quality of this chart pattern at the above average 6 bar level as a result of the following values of the individual Quality indicators: significant Initial Trend (rated at the 6 bar level), low Uniformity (3 bars) and high Clarity (9 bars). This chart is developing in accordance with the prevailing downtrend that can be seen on the daily and the weekly EUR/JPY charts. Strong Initial Trend of this chart pattern reflects the sharpness of the preceding downward impulse which started form the combined resistance lying at the intersection of two resistance levels -round price level 122.00 and the 50% Fibonacci Retracement of the previous strong daily down-thrust (as is shown on the second chart below). The bottom of this chart pattern (point D below) formed near the strong support at 107.00. EUR/JPY has made a few unsuccessful attempts to break through this level in the last year. The pair is expected to fall further with the support at 107.00 necessary to be broken for the downtrend to continue.
The following weekly EUR/JPY chart shows the aforementioned technical price levels:
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