EUR/JPY Technical Analysis: Has eroded a key rising trendline

The EUR/JPY pair closed at 130.96 on Friday, confirming a downside break of the trendline connecting the Aug. 15 low and Sept. 10 low.
The daily chart also shows a bearish crossover between the 5 and 10 exponential moving average (EMA). So, it seems safe to say that the path of least resistance is to the downside.
The daily MACD is biased toward the bears and the relative strength index (RSI) is threatening to drop into negative territory below 50.00.
The only cause for concern for the bears is long tails attached to three of the previous four daily trading candles.

Omkar Godbole FXStreet Contributor

Daily Chart

Spot Rate: 131.00

Daily High: 131.25

Daily Low: 130.92

Trend: Bearish

Resistance

R1: 131.18 (rising trendline hurdle)

R2: 131.35 (10-day EMA)

R3: 131.98 (Oct. 3 high)

Support

S1: 130.60 (Friday's low)

S2: 130.29 (50-day EMA)

S3: 130.00 (psychological level)

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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