A key 4-hour rejection has taken place at 126.70

EUR/JPY is trading 0.75% higher as JPY struggles across the board.
The bulls have been stopped in their tracks at 126.70.

EUR/JPY 4-hour chart

At the beginning of the week, EUR/JPY has pushed higher and the Japanese Yen underperformed against most of its major counterparts. The EUR/JPY cross has hit a brick wall at the previous wave high resistance.

The price is still in a pretty decent uptrend and since the price hit a low of 114.42 in early May the pair has been making higher highs and higher lows. If the uptrend is to continue the aforementioned high of 126.75 needs to be broken.

The indicators are looking pretty bullish. The MACD histogram is in the green and the signal lines still remain above the zero line. The Relative Strength Index is above 50 but the current wave is lower than the previous one.

Tomorrow could be a pivotal day as EU PMI, German PMI’s and EU inflation data are all set to be released. On the downside, the blue upward sloping trendline could be a support zone along with the red horizontal line at 125.14.