EUR/JPY Technical Analysis: creating falling wedge on 1H chart

• The EUR/JPY has charted a falling wedge on the hourly chart. An upside break would mean the pullback from Aug. 30 high of 130.87 has ended the rally from the Aug. 15 low of 124.90 has resumed.
• However, a bull breakout may not materialize if the Italian bond yields continue to rise. Technically speaking, a daily close below 128.59 (38.2% Fib R of 124.90/130.87) would confirm the rally from 124.90 has ended.

Hourly Chart

Spot Rate: 128.62

Daily High: 128.96

Daily Low: 128.57

Trend: Bullish above 128.78 (top end of the falling wedge)

Resistance

R1: 128.78 (wedge hurdle)

R2: 129.29 (200-hour moving average)

R3: 129.50 (50-hour moving average)

Support

S1: 128.59 (38.2% Fib R of 124.90/130.87)

S2: 127.82 (4H 100-candle moving average)

S3: 127.18 (61.8% Fib R of 124.90/130.87)