EUR/JPY technical analysis: At session highs near 118.20, further gains likely

• EUR/JPY's daily chart indicators are signaling a bullish reversal.
• The price chart shows signs of seller exhaustion below 118.00.

EUR/JPY is currently trading at 118.20, representing 0.25% gains on the day.

The currency pair looks set to test 119.00 in the next 24 hours or so, as the daily chart is flashing early signs of bullish reversal.

To start with, the 14-day relative strength index is reporting a bullish divergence.

Further, the moving average convergence divergence histogram is about to cross above zero, confirming a bullish reversal.

Also, there are strong signs of seller exhaustion on the price chart. For instance, the sellers have repeatedly failed to keep the pair below 117.80 over the last nine days.

Daily chart

Trend: Bullish

Pivot levels