EURJPY is trading around 132 level inside an upward sloping wedge pattern. As we mentioned in a previous post, the RSI has provided us with a bearish divergence warning. I expect prices to roll over towards 131 at least during the coming days.

Red lines- bearish divergence

EURJPY is still in a bullish trend and still inside the wedge pattern. At current price levels I prefer to be neutral if not bearish. My view is that EURJPY will weaken soon and we will see at least a pull back towards the 131 level. If support by the wedge pattern is broken, then traders should expect a bigger decline maybe towards 128.