The EUR/JPY has fallen to its trend-line where it is currently consolidating. A rebound is possible, with the range highs at 97.20 providing an upside target. A break above the neckline of a possible inverted head and shoulders, at 97.36, would activate an upside target of 98.50. On the other hand the greater trend is down so it is possible that the pair will breach the current trend-line and move lower, with a break below 96.55 acting as confirmation for a deeper penetration of the 96.20 lows.
Written by Forex4you