EUR/JPY technical analysis: Defends 118, but bias remains bearish

• EUR/JPY has bounced from 118.00 but is yet to violate the bearish lower highs pattern.
• A drop to recent lows may remain elusive if key trendline hurdle is breached.

EUR/JPY is currently trading at 118.24, having hit a low of 118.00 earlier today.

Despite the defense of 118.00, the path of least resistance remains to the downside as the bearish lower highs pattern will remain valid as long as the pair is holding below the Aug. 6 high of 119.87.

Further, the 5- and 10-day moving averages (MAs) continues to trend south, indicating a bearish setup.

So, a retest of the recent low of 117.67 could be seen during the day ahead.

The pair could test the 10-day MA, currently at 119.10, if the hourly chart falling trendline hurdle, currently at  118.70 is violated.

Daily chart

Hourly chart

Trend: Bearish