EUR/JPY Technical Analysis: Has eroded a key rising trendline

• The EUR/JPY pair closed at 130.96 on Friday, confirming a downside break of the trendline connecting the Aug. 15 low and Sept. 10 low.
• The daily chart also shows a bearish crossover between the 5 and 10 exponential moving average (EMA). So, it seems safe to say that the path of least resistance is to the downside.
• The daily MACD is biased toward the bears and the relative strength index (RSI) is threatening to drop into negative territory below 50.00.
• The only cause for concern for the bears is long tails attached to three of the previous four daily trading candles.

Daily Chart

Spot Rate: 131.00

Daily High: 131.25

Daily Low: 130.92

Trend: Bearish

Resistance

R1: 131.18 (rising trendline hurdle)

R2: 131.35 (10-day EMA)

R3: 131.98 (Oct. 3 high)

Support

S1: 130.60 (Friday’s low)

S2: 130.29 (50-day EMA)

S3: 130.00 (psychological level)