EUR/JPY Technical Analysis: Bearish RSI divergence seen on 1H chart

• The bearish divergence of the relative strength index (RSI), as seen in the hourly chart below, indicates the EUR/JPY could be in for a pullback, having rallied more than 300 pips since Aug. 15.
• A break above 128.28 will invalidate the bearish view and may allow EUR/JPY to extend the recent rally toward 50-day moving average (MA) lined up at 128.90.

Hourly chart

Spot Rate: 128.10

Daily High: 128.27

Daily Low: 127.99

Trend: Bearish

Resistance

R1: 128.27 (session high)

R2: 128.44 (50% Fib R of 131.99/124.90)

R3: 128.90 (50-day MA)

Support

S1: 127.63 (50-hour MA)

S2: 127.34 (support as per the hourly chart + 5-day MA)

S3: 126.64 (June 19 low)