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. 

Daily chart

Trend: Bearish below trendline support

Technical levels