The EUR/JPY has struggled to make much gains above the 130.00 level the last couple weeks despite “risk assets” like the US equity markets surging to all time highs. If you are bullish, take note that:
- EUR/JPY has been in an ascending wedge since mid-2019, and these are eventual reversal patterns by nature, which should be noted.
- The daily RSI is divergent.
- The false breakout above the 130.65 level two days ago may lead to a move below the 129.50 support.
- A break of the 129.00 level (trend line) would be a bearish reversal signaling the wedge breakdown.
- A 13yr trend line (from 2008) comes in just above the 130.00 level, so a turn lower in the coming weeks would be a major rejection for the pair in the event we see lower prices.
