EUR/JPY Technical Analysis: Struggling to build on a bullish breakout

• The EUR/JPY's hourly chart shows the cross is struggling to build on a bullish falling wedge breakout.
• The upside break witnessed yesterday, signaled a resumption of the rally from the Aug. 15 low of 124.90, however, the pair's retreat from 129.57 has established a lower highs pattern. As a result, the bulls would want to see a move above 129.57 before jumping the gun.
• On the downside, a move back inside the falling wedge would neutralize the bullish outlook.

Hourly Chart

Spot Rate: 129.30

Daily High: 129.55

Daily Low: 129.25

Trend: Bullish above 129.55

Resistance

R1: 129.55 (resistance as per the hourly chart)

R2: 129.98 (Sep. 5 high)

R3: 130.87 (Aug. 30 high)

Support

S1: 129.00 (psychological level + 200-hour moving average)

S2: 128.77 (Sep. 11 low support on the hourly chart)

S3: 127.86 (Sep. 9 low)