EUR/JPY technical analysis: Momentum stalling below of trendline support

• Bearish momentum stalling following a break of trend-line support.
• Bears can target 115.87 ahead of the 2017 low at 114.86.

Overcoming the 6-month downtrend at 118.77 and rising from 116.58/115.87 recent lows, EUR/JPY rallied to the September highs which meet the July lows, reinforcing the upside resistance at this juncture. 

Overall, the price is submerged below bearish moving averages within a descending channel although remains below trendline support. However, an upside extension beyond the 200-day moving average at 122.50 will look for a test of the 38.2% Fibonacci in the 124 handle on the wide. On the downside, bears can target 115.87 ahead of the 2017 low at 114.86.

EUR/JPY daily chart