Interesting technical patterns can be seen on the daily graph of the EUR/JPY pair. First of all, the consolidation is under-way for the fourth week, and it is better visible on the higher time frame. Graph on D1 indicates a potential formation of a double bottom, which could be the end of strong declines. The strong sell-off did not lead to break the trend, despite descending below the last low. The declines have exactly the same range as the biggest correction in the trend, which has been going on since July 2016. It seems, therefore, that the current deceleration of declines brings chances for a stronger upward movement, ending a very extensive correction. The formation of the double bottom will become active after breaking the level of 132.40.
