The EUR/JPY pair is consolidating within a range with a neutral-to-slightly-bearish bias because of the sharp move down on Monday and the exhaustion gap on Friday which probably signalled the end of the up-trend. If it breaks below the 98.69 lows it could continue and re-touch the trend-line at 97.85; alternatively a break above the 100.40 level would signal a probable move higher, perhaps to 101.15 where pivot and moving average merge to cap further gains.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst