EUR/JPY Technical Analysis: Awaits pennant breakout

• The EUR/JPY has charted a pennant pattern on the hourly chart. A break above 131.04 (top end of the pennant) would signal a revival of the rally from the Sept. 10 low of 127.86 and could yield a test of resistance at 131.99 (July 17 high).
• The 5-day and 10-day moving averages (MAs) are trending north in favor of the bulls. Further, the relative strength index (RSI) is holding in bullish territory above 50.00.

Hourly Chart

Spot Rate: 130.97

Daily High: 131.03

Daily Low: 130.30

Trend: Bullish above 131.04

Resistance

R1: 131.07 (200-day moving average)

R2: 131.99 (July 17 high)

R3: 133.49 (April 24 high)

Support

S1: 130.41 (5-day moving average)

S2: 129.71 (10-day moving average)

S3: 129.26 (50-day moving average)