EUR/JPY 4H Chart: Symmetrical Triangle
- The ECB President Mario Draghi’s speech last week caused a lot of anxiety in the markets and pushed the Euro into a symmetrical triangle against the Japanese Yen.
The pattern has already two reaction highs and two reaction lows, which means that the current round most probably is going to end with the breakout.
- An early Tuesday morning the pair started in a limbo between the weekly PP at 1229.57 and the 20-hour SMA from the top and a combination of the 55- and 100-hour SMAs near 129.34 from the bottom.
- Some of the technical indicators suggest taking a long position.
- However, the outcome of this situation, most probably, will depend on release of the German Ifo Business Climate at 8:00 GMT, which is expected to determine the rate’s direction for the rest of the day.
- In a longer perspective, the Euro is likely to be heavily affected in case of adoption of the new US sanctions against Russia that will lead to transfer of assets into safe heavens, such as the Japanese Yen.
