EUR/JPY Technical Analysis: Hits 11-day high, bulls need break above 122.35

• EUR/JPY bounced up from the key rising trendline last week. 
• The pair is still trapped in an expanding descending channel. 
• The bulls need a break above the channel resistance at 122.35.

EUR/JPY is currently trading at 121.86, the highest level since Jan. 2 and is flashing green for the fourth straight day. 

The pair defended the trendline rising from Sept. 3 and Oct. 8 lows on Wednesday and has risen by nearly 100 pips ever since. 

While the bounce is encouraging, a bullish breakout is still not confirmed, as the pair is trapped in a minor expanding descending channel. 

At press time, the resistance of the expanding channel is seen at 122.35. A close above that is needed to confirm a breakout and open the doors for a stronger rally toward 124.20. 

Put simply, 122.35 is the level to beat for the bulls. On the downside, acceptance under the ascending trendline would imply a bearish reversal. 

Daily chart

Trend: Bullish above 122.35

Technical levels