EUR/JPY Price Analysis: Looks north with bearish channel breakout on 4H

• EUR/JPY has exited a two-week-long bearish channel. 
• The breakout indicates a resumption of the rally from October lows. 

EUR/JPY has jumped to 123.90, extending Monday's ascent from 122.97 and confirming a bearish channel breakout on the 4-hour chart. 

The breakout indicates the sell-off from the Nov. 9 high of 125.14 has ended, and the broader uptrend from the Oct. 30 low of 121.62 has resumed. 

The channel breakout is backed by an above-50 or bullish reading on the 4-hour chart Relative Strength Index. Further, the 4-hour chart MACD histogram is printing higher bars above the zero line, indicating a strengthening of the upward momentum. 

As such, the pair could challenge resistance at 124.44. A violation there would expose the Nov. 9 high of 125.14. The bias would turn bearish if the pair falls back below 122.84 (Nov. 19 low). The pair is currently trading at 123.77. 

4-hour chart

Trend: Bullish

Technical levels