- EUR/JPY could rise rise to 118.00-118.20 in the next few hours.
- The pair has created a long-tailed doji on the hourly chart.
- The hourly chart is reporting bullish divergence of indicators.
EUR/JPY could be in for a minor corrective bounce to 119.00-119.20, as signs of seller exhaustion have emerged on the hourly chart.
To start with, the pair created a big long-tailed doji early today, a sign of indecision among sellers.
Further. the relative strength index (RSI) is beginning to produce higher lows, contradicting lower lows on price, meaning the indicator is charting a bullish divergence.
The moving average convergence divergence is also reporting a bullish divergence.
All-in-all, the stage looks set for a corrective rally. As of writing, the pair is trading at 118.82.
Hourly chart
Trend: Oversold bounce
Pivot points
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