EUR/JPY Technical Analysis: Recovery is losing steam

• The repeated failure to scale the hourly chart resistance at 126.37 and the rising wedge bearish reversal seen in the hourly chart indicates the corrective rally from the Aug.15 low of 124.90 has likely ended. As a result, a re-test of the recent lows below 125.00 cannot be ruled out.
• On the higher side, a convincing move above 126.37 would set the tone for a move higher toward the 200-hour moving average of 127.20.

Hourly chart

Spot Rate: 126.11

Daily High: 126.27

Daily Low: 126.04

Trend: Neutral

Resistance

R1: 126.37 (resistance as per the hourly chart)

R2: 127.00 (psychological level)

R3: 127.20 (200-hour moving average)

Support

125.91 (50- hour moving average)

125.70 (support as per the hourly chart)

124.90 (Aug. 15 low)