EUR/JPY Price Analysis: Six-month-old resistance line stays in the spotlight

• EUR/JPY keeps recover moves from 126.32 to probe the previous day’s top, also the highest since March 2019.
• MACD teases the bulls near the upward sloping trend line from February 2020.
• 21-day SMA, support line of a broad rising wedge restrict near-term downside.

EUR/JPY remains well bid near 126.80, up 0.30% on a day, ahead of Tuesday’s European session open. In doing so, the pair attacks an ascending trend line from February while taking rounds to the 18-month high flashed on Monday.

Even if the resistance line of a multi-month-old rising wedge bearish formation limits the pair’s immediate upside around 126.95, MACD histogram teases the bulls, which in turn suggests the pair’s further upside.

As a result, the bulls will wait for a clear break of 127.00 round-figures to attack the year 2019 peak surrounding 127.50. Though multiple lows marked during the late-2018 could restrict the quote’s additional rise around 127.60/70.

Meanwhile, the 21-day EMA level of 125.35, followed by the ascending trend line from May 2020, at 124.83, becomes the key support to watch.

In a case where the EUR/JPY prices slip below 124.83, the pair confirms a bearish chart formation that could, theoretically, challenge the yearly bottom around 114.40.

EUR/JPY daily chart

Trend: Bullish