EUR/JPY Technical Analysis: Break above the March 20 high needed to solidify Friday's bull breakout

EUR/JPY jumped 0.73 percent on Friday, the biggest single-day rise since Jan. 25, confirming a falling channel breakout or a transition from the bearish-to-bullish market.

The trend change, however, would gain credence if and when the JPY cross violates the lower highs pattern with a move above the March 20 high of 126.79. That would open the doors for a sustained rally toward 130.00.  On the way higher, the pair may encounter resistance at 127.67 (200-day moving average).

The break above 126.79, however, may not happen immediately, as the relative strength index (RSI) on the 4-hour chart is flashing overbought conditions. So, the pair may consolidate or see a minor pullback over the next 24 hours or so.

The bullish outlook would be invalidated if the pair finds acceptance below the ascending 5-day moving average, currently at 125.81. As of writing, the pair is trading at 126.63. 

Daily chart

Trend: Bullish