EUR/JPY Technical Analysis: Recovery rally to continue above 127.70

• Currently, the EUR/JPY pair is reporting moderate losses at 127.42, having failed to cut through the 50-hour EMA on Friday.
• The EUR/JPY's recovery from the recent low of 126.63 will likely resume if the resistance at 127.70 - 50-hour exponential moving average (EMA) and falling trendline resistance - is scaled.
• Drilling on the 15-minute chart, the pair has charted a bull flag pattern. An upside break would open the doors to 128.77 (target as per the measured move method). However, the bears may feel emboldened, if the flag support is breached.

Hourly Chart

15-min Chart

Spot Rate: 127.37

Daily High: 127.66

Daily Low: 127.37

Trend: Bullish above 127.70

Resistance

R1: 127.70 (50-hour EMA + trendline hurdle)

R2: 128.47 (10-day EMA)

R3: 128.32 (Oct. 18 low)

Support

S1: 127.29 (flag support)

S2: 126.93 (support as per the hourly chart)

S3: 126.63 (recent low)