EURJPY is in a bullish trend making higher highs and higher lows. However price is forming an upward sloping wedge pattern that usually is followed by a downward break and a pull back. So far price is respecting the boundaries of the wedge pattern and there is no reversal signal yet. Nevertheless traders need to be cautious and warned.

EURJPY has support at 129 and resistance at 131.50. With price right in the middle, traders better be patient for price to approach the boundaries of the pattern. In case resistance is reached first, traders should better open short positions with stops at the upper boundary. Even if the up trend continues, the chances for a pull back and test of the lower wedge boundary are high. If price breaks below the lower wedge boundary then we have a bearish signal that could push price back towards 125-124. For now traders better wait.