EUR/JPY Technical Analysis: Falling trendline breached, but bulls need a break above 130.27

• The upside break of the falling trendline, as seen in the hourly chart, indicates the sell-off from the July 17 high of 131.99 has ended.
• The violation of the descending trendline is also backed by the bullish relative strength index (RSI).
• The 100-hour MA is stationed below the 200-hour MA, meaning the path of least resistance is to the downside.
• Hence, the EUR/JPY is struggling to post sustainable gains above 130.00. That said, a convincing move above 130.27 (overnight high) would add credence to the bullish developments and open the doors to 200-hour MA, currently located at 130.84.

Hourly chart

Spot Rate: 130.00

Daily High: 130.26

Daily Low: 129.91

Trend: Bullish above 130.27.

Resistance

R1: 130.25 (50-hour moving average)

R2: 130.45 (July 23 high hurdle on the hourly chart)

R3: 130.84 (200-hour moving average)

Support

S1: 129.94 (trendline support)

S2: 129.74 (July 24 low support on the hourly chart)

S3: 129.41 (July 25 low)