EUR/JPY changed little today and failed to reach the 134.37 Friday’s high. Price is trading in the red on the Daily chart and continues to be trapped below a dynamic resistance level. The pair moves in range on the short term, so we’ll have a clear direction only after a valid breakout from it.

Remains to see if the sideways movement will be an accumulation or a distribution movement. The bias remains bullish on the daily chart because the rate stays above a very strong dynamic support, but is far away from some very important upside targets signaling an exhaustion.

Will be very important to see what will really happen with the Nikkei in the upcoming days, a valid breakout above the 23000 will signal a further increase in the upcoming period. The Yen increased a little as the Nikkei is trading in the red after the morning gap up. The Japanese data didn’t have much impact, the Consumer Confidence increased from 44.5 to 44.9 points, beating the 44.8 estimate, while the Monetary Base increased by 13.2%, matching expectations.

On the other hand, the Euro-zone data have come in mixed, the PPI rose by 0.4%, matching expectations, while the Sentix Investor Confidence  was reported at 31.1 points, lower versus the 32.3 points. The Spanish Unemployment Change was reported at 7.3K, lower versus the 54.3K estimate and versus the 56.8K in the former reading period.

The rate has found resistance at the sliding line (sl) of the major red ascending pitchfork. Another false breakout above the mentioned resistance will confirm another minor drop towards the upper median line (UML) of the ascending pitchfork. Technically, it is somehow expected to approach and reach the lower median line (lml) of the blue ascending pitchfork after the failure to retest the median line (ml).

The pair will increase further if the Nikkei will increase further as well. A selling opportunity will appear after a valid breakdown below the UML of the ascending pitchfork.