- EUR/JPY's daily chart shows an impending bull cross of long-term averages.
- Price patterns also indicate the path of least resistance is to the higher side.
EUR/JPY is looking to extend Monday's gain with key simple moving average (SMA) indicators eyeing their first bullish turn since November 2019.
The pair is currently trading at 121.12, representing a 0.16% gain on the day, having risen from 120.13 to 121.36 on Monday.
The pair's 50-day SMA is trending north and appears set to cross above the 100-day SMA in the next day or two. The resulting bull cross would be first since mid-November and may bolster the bullish patterns seen on the 4-hour and daily charts.
While the 4-hour chart shows a falling wedge pattern, a bullish reversal setup, the daily chart shows a bullish Doji continuation pattern (Friday's Doji + Monday's big green candle). In addition, the 14-day relative strength index is reporting bullish conditions with an above-50 print.
The pair looks set to cross above Monday's high of 121.36 and challenge resistance at 122.12 (June 16 high). The bullish bias would be invalidated if the support at 120.00 is breached.
4-hour chart
Daily chart
Trend: Bullish
Technical levels
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