EUR/JPY Price Analysis: Off lows, but daily chart favors bears

• EUR/JPY's daily chart shows a bearish Doji reversal pattern. 
• The pair has bounced from session lows, but upside looks limited.

EUR/JPY is currently trading near 122.10, having hit a low of 121.81 an hour ago. 

The recovery could be extended further, as the hourly chart relative strength index has produced higher lows, diverging from lower lows on price.

However, stronger bounce, if any, could be transient, as the daily chart shows a bearish Doji reversal pattern. The pair created a Doji candle on Friday, validating the above-30 or overbought reading on the relative strength index (RSI) and signaling buyer exhaustion. Further, it posted a negative follow-through on Monday with a 1% decline, confirming a trend change. 

As per the daily chart, the pair appears on track to test the psychological support of 121.00. The bearish bias would be invalidated if the pair finds acceptance above Monday's high of 124.12. 

Daily chart

Trend: Bearish

Technical levels