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.

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