EUR/JPY awaits range breakout

• EUR/JPY is wedged between the 100-day moving average (MA) and the 100-day moving average.
• Rising wedge pattern sighted on the daily chart.

The EUR/JPY is stuck in a narrow range defined by the 100-day moving average and the gradually ascending 200-day MA.

As of writing, the 100-day MA is seen at 133.03 and the 200-day MA is lined up at 132.24. An upside breakout could yield a rally to 134.00, while a bearish breakdown may allow a pullback to 131.00 (target as per the measured height method).

The daily chart also shows a rising wedge pattern -  a downside break would signal a revival of the sell-off from the February high of 137.51.

The data calendar is light today, so the pair will likely continue trading the range. Eurozone April Markit manufacturing and services PMIs are due Monday and the ECB meets Thursday. Thus, the breakout could happen next week.

EUR/JPY Technical Levels

As of writing, the currency pair is trading at 132.85. A clear break above 133.03 (100-day MA) would expose resistance seen at 134.13 (Jan. 30 low) and 134.23 (61.8% Fib R of Feb-March drop). On the downside, acceptance below 131.90 would confirm the rising wedge bearish reversal and open up downside towards 131.17 (Nov. 20 low) and 131.00 (psychological level).