#EURJPY @ 136.203 -imp levels: A Symmetrical Triangle formation indicates a volatility contraction.

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• A Symmetrical Triangle formation indicates a volatility contraction.
• The asset is displaying a consolidation phase for the past two weeks.
• For a downside move, the RSI (14) needs to slip below 40.00 decisively.

The pair currently trades last at 136.203.

The previous day high was 136.99 while the previous day low was 136.02. The daily 38.2% Fib levels comes at 136.39, expected to provide resistance. Similarly, the daily 61.8% fib level is at 136.62, expected to provide resistance.

The EUR/JPY pair is displaying a balanced market profile for the past two weeks after declining from the August 10 high at 138.40. In the Asian session, the cross is juggling in a narrow range of 136.00-136.23 and is likely to continue its sideways move till the release of a potential rigger for a decisive move.

The formation of a Symmetrical Triangle chart pattern on an hourly scale indicates a contraction in volatility. The upward-sloping trendline of the above-mentioned chart pattern is placed from August 16 low at 134.95 while the downward-sloping trendline is plotted from August 10 high at 138.40. An explosion of the symmetrical triangle will result in higher volume and wider ticks.

The 50-period Exponential Moving Average (EMA) at 136.35 is overlapping with the cross prices, which indicates a continuation of rangebound moves.

Also, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which signals the unavailability of a potential trigger.

Should the asset drops below August 4 low at 135.64, yen bulls will get strengthened further. An occurrence of the same will drag the cross towards the previous week’s low at 134.90, followed by August 2 low at 133.40.

On the contrary, the shared currency bulls could defy the downside momentum if the cross oversteps the round-level resistance of 138.00. This will drive the asset towards July 29 high at 139.51, followed by July 18 high at 140.80.

Technical Levels: Supports and Resistances

EURJPY currently trading at 136.21 at the time of writing. Pair opened at 136.17 and is trading with a change of 0.03 % .

The pair is trading below its 20 Daily moving average @ 136.64, below its 50 Daily moving average @ 138.92 , below its 100 Daily moving average @ 138.25 and above its 200 Daily moving average @ 134.22

The previous day high was 136.99 while the previous day low was 136.02. The daily 38.2% Fib levels comes at 136.39, expected to provide resistance. Similarly, the daily 61.8% fib level is at 136.62, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 135.79, 135.42, 134.83
• Pivot resistance is noted at 136.76, 137.36, 137.73

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