EUR/JPY has been bearish in the daily chart for the last two days. The pair had a rejection at the same level of resistance twice. At the second rejection, it produced a pin bar and headed towards the South. If the price heads towards the downside further and makes a breakout at the neckline, the pair may make a long bearish move. Major intraday charts are bearish biased as well. Let us have a look at three vital charts.
Chart 1 EUR/JPY Daily Chart
The chart shows that the price made a long bullish move and had a rejection at the level of 1.19280. At the first rejection, it headed towards the South and found its support at 1.17500. The price made a bullish move and had a rejection at the level of 1.19280 again. At the last rejection, it produced a pin bar followed by another bearish candle. If the price keeps going towards the South and makes a breakout at the level of 1.17500, the pair may make a long bearish move. It may find its next support around 1.14600. The chart suggests that it may go up to the level of 1.11650.
Chart 2 EUR/JPY H4 Chart
The chart shows that the price produced a bearish engulfing candle and headed towards the South. It consolidated at the level of 125.925 and produced a bearish engulfing candle. The next candle came out as a bearish candle too. The price may head towards the downside and find its next support around 1.17600. Since the daily chart is bearish biased and daily support still offers some space for the price to travel. The price may make a breakout at 1.17600 and produce good bearish momentum.
Chart 3 EUR/JPY H1 Chart
The chart shows that the price made a breakout at yesterday’s lowest low at 125.590. The pair is trading below the level. The sellers may wait for the price to consolidate at the level and produce a bearish reversal candle to offer them a short entry. If that happens, the sellers may drive the price towards the level of 1.17700. The level is H4 support as well. Thus, a breakout at the level may generate good bearish momentum in the H1 chart. On the contrary, if the price makes a bullish breakout at 125.590, the price may find its next resistance at 1.18550.
The daily, the H4, and the H1 chart are bearish biased. Thus, the pair may end up producing a bearish candle in the daily chart. If the candle closes below the neckline level, the Bear may dominate in the pair in the coming days.