EUR/JPY technical analysis: Trades above 118 with flag breakout on the hourly chart

• EUR/JPY's hourly chart shows a bull flag breakout and bullish readings on indicators.
• The pair could rise to 118.50 in the next few hours, having hit a low of 117.51 on Monday.

EUR/JPY is currently trading at 118.20, having hit a 28-month low of 117.51 on Monday.

The recovery could be extended further to 118.50 in the next few hours, as the hourly chart is reporting a bull flag breakout out.

A bull flag is a continuation pattern, which often accelerates the preceding bullish move.

EUR/JPY's flag breakout is also backed by bullish readings on the hourly chart relative strength index and the moving average convergence divergence histogram.        

The rise to 118.50, however, may not happen if the Asian equities slide in response to geopolitical tensions, strengthening the bid tone around the anti-risk Japanese Yen.

Hourly chart

Trend: Bullish

Pivot points