- EUR/JPY carved out an inverted hammer candle on Monday.
- A move above Monday’s high is needed to confirm bull reversal.
EUR/JPY gained 0.11% on Monday, ending a six-day losing streak
The JPY cross formed an inverted hammer, neutralizing the immediate bearish outlook.
A bullish reversal would be confirmed if Monday’s high of 125.34 is scaled on a close basis on Tuesday. That will likely yield a re-test of the Aug. 13 high of 126.75.
The bias would again turn bearish if sellers push the pair below 124.61, invalidating Monday’s inverted hammer.
However, a bullish scenario looks likely, as the renewed optimism on the US-China trade front is likely to keep the JPY bulls at the bay. The pair is currently trading near 125.00, representing marginal gains on the day.
Daily chart
Trend: Bullish above 125.34
Technical levels
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