Autochartist Forecast - EUR/JPY Approaches Congests within Triangle

The EUR/JPY has been trending higher on the shorter term intraday charts like the 15, 30, and 60 minute charts. As New York prepares to open it would be likely that some uptrending pattern alerts will emerge. But the real question will be whether or not the EUR/JPY has the buying support to test and overcome the major psychological resistance waiting at 136.00.

The market cycle on the longer intraday timeframe -- the 240 minute chart -- would indicate that the pair is in distribution. This means that breakouts are not likely to follow through since the market is going sideways, but in a wider, more unpredictable and volatile range. The current Triangle pattern alert on the 240 minute makes perfect sense since there is little trend on this chart and it's common that triangle patterns begin with a distribution cycle at the wider end of the triangle and tighten up into accumulation as the triangle's downtrend and uptrend lines squeeze price action.



The recent highs that this pattern will also be contending with will be the 136.05 and 136.09 highs from June 27th and 28th. The breakout level on the chart is at these levels. However if the distribution cycle continues and the market cycle does not continue to flatten out as it travels within this pattern, there is more chance of exhaustion at the "00" than a breakout. If prices are able to pierce the 136.09 high, then a breakout could follow through to the Forecast Region that will be plotted once this pattern triggers. Remember the next level up to watch is the 136.88 high from June 1st.

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