EUR/JPY technical analysis: Nears 119, six month falling trendline breached

EUR/JPY has found acceptance above a key trendline from April highs.
The breakout is backed by bullish readings on key indicators.
The pair could challenge the 50-day moving average hurdle in the short term.

Omkar Godbole FXStreet Contributor

EUR/JPY is looking north, having found acceptance above key falling trendline resistance.

The pair jumped 0.76% on Thursday, confirming an upside break of the trendline connecting April 17 and July 1 highs.

The breakout validates the bullish higher low of 117.07 created on Oct. 7 and indicates the path of least resistance is to the higher side.

The breakout is also backed by a bullish crossover on the MACD histogram and ascending 5- and 10-day moving averages.

As a result, a convincing break above 119.00 could be in the offing. On the higher side, key resistance is seen at 119.86 (50-day moving average).

The bullish outlook would be invalidated if the pair falls back below the trendline. That could happen if the ongoing US-China trade talks end on a sour note, triggering a flight to safety. As of writing, the pair is trading at 118.94, representing marginal gains on the day.

Daily chart

Trend: Bullish

Technical levels

EUR/JPY

Overview
Today last price	118.94
Today Daily Change	0.17
Today Daily Change %	0.14
Today daily open	118.78

Trends
Daily SMA20	118.26
Daily SMA50	118.14
Daily SMA100	119.9
Daily SMA200	122.41

Levels
Previous Daily High	118.96
Previous Daily Low	117.56
Previous Weekly High	118.2
Previous Weekly Low	117.07
Previous Monthly High	120.01
Previous Monthly Low	115.86
Daily Fibonacci 38.2%	118.42
Daily Fibonacci 61.8%	118.1
Daily Pivot Point S1	117.91
Daily Pivot Point S2	117.04
Daily Pivot Point S3	116.52
Daily Pivot Point R1	119.3
Daily Pivot Point R2	119.82
Daily Pivot Point R3	120.69

Author

Omkar Godbole

FXStreet Contributor

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

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.