EUR/JPY Technical Analysis: Rally remains elusive despite bull RSI divergence

• The EUR/JPY hourly chart shows a bullish relative strength index (RSI) divergence and an upside break of the falling trendline. Still, a bull rally is not materializing.  
• A break below 128.51 (previous day's low) would put the focus back on the lower highs and lower lows pattern seen in the daily chart and allow a drop to 127.43 (61.8% Fib R of May 29 low - July 7 high).

Hourly chart

Spot Rate: 128.68

Daily High: 128.73

Daily Low: 128.59

Trend: Neutral

Resistance

R1:129.13 (5-day moving average)

R2: 129.29 (50-day moving average)

R3: 129.54 (10-day moving average)

Support

S1: 128.50 (April 7 low)

S2: 128.30 (50% Fib R of May 29 low - July 17 high)

S3: 128.00 (psychological level)