The EUR/JPY rallied ahead of the European Central Bank Press Conference, but failed to stay near the 131.08 today’s high and now is trading in the red again. Price erased the earlier gains and now is pressuring a dynamic support level. A valid breakdown will still signal a further drop in the upcoming period.

EUR/JPY is uncertain on the short term, is trapped within an ascending channel, only a valid breakout from it will bring us a clear direction on the short term. Right now will be better to stay away because we don’t have any trading opportunity.

The Japanese Leading Indicator was reported at 105.0%, less versus the 105.1% estimate and versus the 105.9% in the previous reading period. The Euro increased as the European Central Bank has decided to maintain the monetary policy. The Minimum Bid Rate remains steady at the 0.00% as expected.

I’ve added the Nikkei’s daily chart to show you what are the perspectives on Yen in the upcoming period. JP225 moves somehow sideways on the short term, even if the bias is bearish.  You can see that has broken below the first warning line (WL1), has come to retest it in the yesterday’s session and now is going down again.  Remains to see if this will be a valid breakdown, you can notice that we have another false breakdown in the previous week. A valid breakdown will lead the rate at least till the 18936 or lower at the median line (ml). You should know that a further drop will force the Yen to dominate the currency market.

EUR/JPY is trapped between the outside sliding line (SL) and the outside sliding line (SL), so only a breakout will bring us a great trading opportunity. Technically is somehow expected to drop further after the failure to retest the red uptrend line and after the failure to close on the sliding line (SL).  You can see that has retested also the median line (ml) of the black ascending pitchfork, failing to stay above, so technically is more a sell than a buy.