EUR/JPY Price Analysis: Snaps 6-day losing trend, Tuesday’s close pivotal

• EUR/JPY carved out an inverted hammer candle on Monday. 
• A move above Monday's high is needed to confirm bull reversal.

EUR/JPY gained 0.11% on Monday, ending a six-day losing streak

The JPY cross formed an inverted hammer, neutralizing the immediate bearish outlook. 

A bullish reversal would be confirmed if Monday’s high of 125.34 is scaled on a close basis on Tuesday. That will likely yield a re-test of the Aug. 13 high of 126.75. 

The bias would again turn bearish if sellers push the pair below 124.61, invalidating Monday’s inverted hammer. 

However, a bullish scenario looks likely, as the renewed optimism on the US-China trade front is likely to keep the JPY bulls at the bay. The pair is currently trading near 125.00, representing marginal gains on the day. 

Daily chart

Trend: Bullish above 125.34

Technical levels