EUR/JPY is moving inside the high Clarity Down Channel chart pattern identified by Autochartist on the daily charts. The overall Quality of this chart pattern is measured at the 5 bar level as a result of the low Initial Trend (rated at the 3 bar level), higher Uniformity (4 bars) and substantial Clarity (7 bars). The low Initial Trend reflects the sideways price action which preceded this chart pattern and which developed as the price approached the support at the round price level 114.00 (point B on the chart below). This support was then broken by the first downward impulse of this chart pattern (from A to C), bringing the pair down close to the previous strong support at 107.00 (which the pair has been trying to penetrate unsuccessfully from the middle of the last year, as is shown on the second chart below). The pair has recently corrected sharply from the support at 107.00 (point E, which also coincides with the lower support trendline of this Down Channel) and is expected to continue correction toward the upper resistance trendline of this chart pattern.
The following weekly EUR/JPY chart shows the longer-term picture of price action close to the key support at 107.00:
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