Forex: EUR/JPY closes slightly higher as recent trading range continues

FXstreet.com (Barcelona) - The EUR/JPY traded in a narrow range, but managed to close the day slightly higher up 32 pips at 128.09. Earlier in the session Industrial Production (-7.3% actual vs. -7.2% estimate) and Retail Trade (-0.3% actual vs. 0.5% estimate) were both released, with very little reaction to the numbers and the pair currently up 13 pips at 128.22.

According to Val Bednarik at FXStreet.com, “The EUR/JPY maintains the negative tone seen on previous updates, after a recovery failed to extend beyond 128.80 resistance. The hourly chart shows price hovering around 128.00 as moving averages gain a slightly bearish tone above current price with 100 SMA below 200 one, and indicators aiming to cross their midlines upside down.
In the 4 hours chart technical readings maintain a bearish tone, all of which favors a retest of 127.00 immediate support.”

From a pattern perspective, it appears there is a large "pennant" pattern forming on the daily chart (similar to the other yen crosses such as AUD/JPY). This is a continuation pattern which should eventually resolve itself to the upside (although currently appears to be in the very early stages). Keep an eye on the upper boundary (129.90) and lower boundary (127.00) as a move above or below either of these levels could be an important factor in determining the next major move.