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  • EUR/JPY trades near 124.00 versus 125.14 during Monday’s US session. 
  • Monday’s falling trendline breakout fails to entice buyers. 

EUR/JPY is flashing red at press time despite a bullish breakout on the daily chart. 

The currency pair is trading near 124.00, representing a 0.35% drop on the day.

The losses contradict the bullish picture painted by Monday’s close above the descending trendline falling from Sept. 1 and Oct. 20 highs. The breakout suggested that the sell-off from 127 has ended and the path of least resistance is now to the higher side. 

So far, however, the bulls have remained elusive, which is somewhat confounding, given the pro-risk environment in markets. The US stocks jumped on Monday, providing positive cues to Asian equities after US pharma giant Pfizer announced positive results of its coronavirus vaccine. 

The pair has immediate support at 123.74 (100-day SMA), which, if breached, would expose the psychological handle of 123.00. On the flip side, a move above the Asian session high of 124.49 would open the doors for a re-test of 125.14 (Monday’s high). 

Daily chart

Trend: Neutral

Technical levels