EUR/JPY Price Analysis: Holds 4.5-month ascending trendline
- EUR/JPY is probing major ascending trendline support.
- A downside break would confirm a bearish reversal and expose deeper support levels.
EUR/JPY is currently testing the bounds of the uptrend line rising from September and October lows.
A break below the trendline support at 121.00 on a daily closing basis would suggest the upside from September lows below 116.00 has run its course, opening the doors for a drop to deeper support levels.
The first major hurdle for sellers after the breach of trendline would be 120.16 (Jan. 3 and Jan. 8 low).
Initial resistance is marked by an hourly chart falling trendline resistance, currently at 121.88. Securing a foothold above that would revive the bullish case and expose the recent high of 122.87.
At press time, the pair is sidelined just above 121.00. The cross printed a low of 120.63 on Thursday but managed to close above the ascending trendline rising from September lows.
Trend: Bearish below trendline support