EUR/JPY Technical Analysis: Challenging top edge of the falling channel

• The EUR/JPY pair is struggling to break above the top end of the falling channel of 129.84, having charted a doji candle yesterday, which indicates indecision in the marketplace.
• A convincing break above 129.84 would validate yesterday's doji candle and confirm a falling channel breakout. If confirmed, it would mean that pullback from the recent high of 113.13 has ended and could yield a sustained move above 130.50 (Oct. 10 high).
• On the downside, a close below yesterday's doji candle's low of 129.13 would signal a revival of the sell-off from the recent high of 113.13 and would open up downside toward 128.14 (falling channel support).

4-hour Chart

Spot Rate: 129.64

Daily High: 129.83

Daily Low: 129.40

Trend: Bullish above 129.84

Resistance

129.84 (falling channel resistance)

130.50 (Oct. 10 high)

131.00 (psychological level)

Support

S1: 129.40 (session low)

S2: 129.13 (previous day's low)

S3: 128.14 (falling channel support)