EUR/JPY for February 4, 2016
As the resistance line at 141.04 has protected the upside and turned prices lower, we still have two possible scenarios in play.
The first shows that a very complex corrective pattern is still unfolding for an orthodox top at 145.69 and since then an expanded flat pattern has been unfolding. A final decline to the territory below 126.05 should be seen.
The second scenario suggests that an expanded flat pattern has terminated at 126.05 and a new impulsive rally now is unfolding, but a break above the resistance-line near 132.50 is needed to gain momentum to play out this scenario. The breakout above 132.50 calls for 141.04 and above.
We will remain sidelined for now.