EUR/JPY technical analysis: Seller exhaustion on the hourly chart, minor bounce likely

• EUR/JPY could rise rise to 118.00-118.20 in the next few hours. 
• The pair has created a long-tailed doji on the hourly chart. 
• The hourly chart is reporting bullish divergence of indicators. 

EUR/JPY could be in for a minor corrective bounce to 119.00-119.20, as signs of seller exhaustion have emerged on the hourly chart. 

To start with, the pair created a big long-tailed doji early today, a sign of indecision among sellers. 

Further. the relative strength index (RSI) is beginning to produce higher lows, contradicting lower lows on price, meaning the indicator is charting a bullish divergence. 

The moving average convergence divergence is also reporting a bullish divergence. 

All-in-all, the stage looks set for a corrective rally. As of writing, the pair is trading at 118.82. 

Hourly chart

Trend: Oversold bounce

Pivot points