EUR/JPY Technical Analysis: Challenging key rising trendline

• The EUR/JPY is flirting with the trendline connecting the Aug. 15 low and Sept. 9 low at the time of writing, the 4-hour chart shows.
• A break below the rising trendline would expose the support lined up at 130.00 (38.2% Fib R of the rally from August lows).
• Strong bounce from the rising trendline and a break above the upper edge of the bull flag would signal a resumption of the rally from the Sept. 10 low of 127.86 and will likely yield a rally to the recent high of 133.13.

4-hour Chart

Spot Rate: 131.07

Daily High: 131.36

Daily Low: 131.04

Trend: Bullish above 131.83 (flag resistance)

Resistance

R1: 131.31 (100-hour exponential moving average)

R2: 131.83 (flag hurdle)

R3: 133.13 (recent high)

Support

S1: 131.00 (rising trendline support)

S2: 130.62 (200-hour exponential moving average)

S3: 130.00 (38.2% Fib R of the rally from August lows)