EUR/JPY Price Analysis: Euro trades in a bearish channel for 7th straight day

• EUR/JPY has carved out a falling channel on the hourly chart. 
• A breakout would signal a continuation of the rally from the Oct. 30 lows. 

EUR/JPY is locked in a bearish channel represented by trendlines connecting Nov. 9 and Nov. 16 highs and Nov. 10 and Nov. 12 lows for the seventh-straight day. 

The channel resistance is currently seen at 124.17. A break above that level would confirm a breakout and imply a resumption of the rally from the Oct. 30 low of 121.62. 

The breakout would shift the focus higher to resistance at 125.14 (Nov. 9 high). Alternatively, acceptance below the lower end of the channel would shift risk in favor of a drop to recent lows below 122.00. 

The bullish scenario looks likely as recent announcements of positive results of experimental coronavirus vaccines by drugmakers Pfizer and Moderna have triggered hopes for a swift global economic recovery next year. 

Hourly chart

Trend: Bullish above channel resistance

Technical levels