The EURJPY H4 chart shows a strong downward trend from the beginning of the week. The price has fallen dynamically from around the resistance at 129.10 into the support area at 127.90. This level even has been broken, but the price quickly came back above. Currently, we are dealing with an upward reaction, the price is around an equal level of 128.00.
Is it time to leave the channel?
The euro exchange rate with the Japanese yen for almost a month is in a fairly narrow range between support at 127.90 and resistance at 129.10. Apart from the short-term breakout, the price of the pair strongly sticks to this range. If declines occur, the bears will have an open way at least to the low from the end of October at 126.65.
If we look at the daily chart, we will see that the first strong support is only in the region of 125.00-50. The price has been there twice this year. In case of returning the demand, the closest target for increases is at 129.10.