EUR/JPY Price Analysis: Declines towards 135.00 on ascending triangle violation

• A downside break of ascending triangle adds to the downside filters.
• A bear cross, represented by the 20-and 50-period EMAs, indicates more downside ahead.
• The RSI (14) has shifted into the bearish range of 20.00-40.00.

The EUR/JPY pair is hovering around the critical support of 135.76. The asset is highly expected to continue its two-day losing streak amid the unavailability of any pullback despite delivering a sheer downside move. In the Asian session, the cross extended its weakness after violating the cushion of 136.00.

On a four-hour scale, the asset has given a downside break of the Ascending Triangle chart pattern, which is expected to result in higher volume and large-size ticks ahead. The upward-sloping trendline of the above-mentioned chart pattern is placed from August low at 133.40 while the horizontal resistance is plotted from August 8 high at 137.93.

The 20-and 50-period Exponential Moving Averages (EMAs) have delivered a bearish crossover near 137.00, which signals more weakness ahead.

Also, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00 after oscillating in the neutral range of 40.00-60.00, which strengthens the yen bulls.

Should the asset drops below the August 4 low at 135.64, yen bulls will get strengthened further. An occurrence of the same will drag the cross towards the previous week’s low at 134.90, followed by an August 2 low at 133.40.

On the contrary, the shared currency bulls could defy the downside momentum if the cross oversteps the round-level resistance of 138.00. This will drive the asset towards July 29 high at 139.51, followed by July 18 high at 140.80.

EUR/JPY four-hour chart