EUR/JPY broke key support level 131…
USD/JPY: yen wants to come back
On the daily chart, USD/JPY bulls are trying to return the pair inside the triangle. If they manage to do it, successful test of resistance at 110.52 will strengthen the risks of correction towards the upper border of the downtrend channel. On the other hand, if bulls fail, bears will be able to keep pulling the pair down to 108 and then 104 (161.8% target of AB=CD).
On H1, the pair left the descending trend channel and is now testing resistance at 109.62. A successful test will strengthen the odds of 88.6% target of “Shark” pattern.
There isn't any reversal pattern so far. If the 21 MA acts as resistance, we're likely going to have just another decline...
Expanding bullish Ichimoku Cloud with rising Senkou Span A; a cancelled golden cross of Tenkan-sen and Kijun-sen; the prices are returned to the support of Tenkan and Kijun and may go higher.
Narrow bearish Ichimoku Cloud with horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen, but the lines are horizontal; the Bulls can’t breaking out the resistance of upper border of the Cloud and the market may return to 113.00.