EUR/JPY Technical Analysis: Struggling to capitalize on channel breakout

Omkar Godbole FXStreet Contributor

EUR/JPY's previous 4-hour candle closed at 126.68, confirming an upside break of the sideways channel. Further, the relative strength index (RSI) on the 4-hour chart is reporting a flag breakout - a bullish continuation pattern.

So far, however, the breakout on both the price chart and RSI has failed to accelerate the preceding bullish move from 124.27 to 126.57.

That said, the pair is holding above the upper edge of the channel, meaning the breakout is still valid. Hence, a rally to resistance at 126.94-127.00 could happen in the next few hours.

The bullish bias would be invalidated if the spot re-enters the sideways channel.

4-hour chart

Trend: Bullish

EUR/JPY

Overview
Today last price	126.6
Today Daily Change	13 pips
Today Daily Change %	0.10
Today daily open	126.47

Trends
Daily SMA20	126.01
Daily SMA50	125.27
Daily SMA100	126.49
Daily SMA200	127.98

Levels
Previous Daily High	126.62
Previous Daily Low	126.08
Previous Weekly High	126.58
Previous Weekly Low	124.48
Previous Monthly High	126.92
Previous Monthly Low	124.16
Daily Fibonacci 38.2%	126.41
Daily Fibonacci 61.8%	126.29
Daily Pivot Point S1	126.16
Daily Pivot Point S2	125.85
Daily Pivot Point S3	125.62
Daily Pivot Point R1	126.7
Daily Pivot Point R2	126.93
Daily Pivot Point R3	127.24

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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