• EUR/JPY is flirting with 50-day MA support amid the drop in the S&P 500 futures. 
• Bulls need a break above the trendline sloping downwards from April highs. 

EUR/JPY fell to the 50-day moving average (MA) support of 119.04 soon before press time, having faced rejection at the resistance of the trendline connecting April 17 and July 1 highs in the early Asian trading hours. 

As of writing, the pair is trading at 119.14, representing 0.40% losses on the day. 

The pair has failed at least three times in the last four days to take out the descending trendline

Today's rejection at the trendline is the fourth since Sept. 13 and has strengthened the case for a convincing break below 119.04 and a deeper drop to 118.69 (Sept. 16 low). 

On the higher side, a convincing daily close above the descending trendline is needed to confirm a bullish reversal. 

The bullish breakout, however, may remain elusive, as the US equity futures are flashing signs of risk aversion. As of writing, the futures on the S&P 500 are down 030%. So, the anti-risk Japanese Yen will likely remain better bid during the day ahead. 

Moreover, the Bank of Japan (BOJ) kept key policy tools unchanged a few minutes before press time, leaving the JPY pairs at the mercy of the broader market sentiment. 

Daily chart

Trend: Bearish

Technical levels