The euro/yen chart has multiple features which suggest a downside target near 107. We show two of these features on this chart extract.
The dominant feature on the chart is the down-sloping trend channel. From July 2015 until June 2016, the lower edge of this trend channel acted as a support level. The line changed its polarity after the break below the lower trend line in June 2016. The line then acted as a resistance level.
On current values, this creates a resistance level near 115 for any rally. This limits the bullish behavior of the euro/yen. The strength of this downtrend line is a bearish feature.
Since June 2016, the euro/yen has been oscillating around the historical resistance level near 113. This has acted as a support level, although it has been seriously breached on several occasions. This suggests this level is a relatively weak support level. This second feature adds to the bearish outlook for the currency pair.