- EUR/JPY needs to clear a descending trendline to confirm a bull reversal.
- The daily chart indicators are already reporting a reversal higher.
EUR/JPY is currently trading at 124.76 – the resistance of the trendline connecting Sept. 1 and Sept. 10 highs.
A daily close above the trendline would imply an end of the pullback from the Sept. 1 high of 127.07 and confirm bullish reversal signaled earlier this week by the MACD histogram’s crossover above zero.
The 14-day relative strength index has also crossed into bullish territory above 50.
A breakout would expose 125.28 – the 61.8% Fibonacci retracement of the sell-off from 127.07 to 122.38.
However, a strong rejection at the trendline hurdle could invite chart-driven selling, possibly yielding a decline to 123.84 (Oct. 7 low).
Daily chart
Trend: Bullish above trendline hurdle
Technical levels
Share
