EUR/JPY Price Analysis: Shared currency invalidates 2.5-year descending trendline

EUR/JPY breaches trendline falling from January 2018 highs.
A breakout, if confirmed on weekly closing basis, would expose highs seen in May.

Omkar Godbole FXStreet Contributor

EUR/JPY is trading at 121.77 at press time, representing a 0.20% gain on the day and a 0.71% rise on a week-to-date basis.

The weekly chart shows the pair has breached the trendline connecting January 2018 and September 2018 highs. As of writing, the former hurdle-turned-support is located at 121.40.

An upside break of the descending trendline would be confirmed if the pair ends above 121.40 on Friday. That would imply an end of the 2.5-year-long bearish trend from 137.50 and put the bulls back into the driver’s seat.

The breakout, if confirmed, would shift the focus to resistance at 124.43 (May high). However, if the pair fails to keep gains above the trendline, sellers will likely feel emboldened and may push the JPY cross lower to 119.31 (June low).

Weekly chart

Trend: Cautiously bullish

Technical levels

EUR/JPY

Overview
Today last price	121.76
Today Daily Change	0.24
Today Daily Change %	0.20
Today daily open	121.52

Trends
Daily SMA20	120.72
Daily SMA50	119.31
Daily SMA100	118.89
Daily SMA200	119.74

Levels
Previous Daily High	121.88
Previous Daily Low	121.14
Previous Weekly High	121.48
Previous Weekly Low	120.05
Previous Monthly High	124.43
Previous Monthly Low	119.32
Daily Fibonacci 38.2%	121.6
Daily Fibonacci 61.8%	121.42
Daily Pivot Point S1	121.14
Daily Pivot Point S2	120.77
Daily Pivot Point S3	120.4
Daily Pivot Point R1	121.89
Daily Pivot Point R2	122.26
Daily Pivot Point R3	122.63

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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