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EUR/JPY: Bullish breakout. A flipped support pushing the price up?

EagleFX

EUR/JPY has been bullish on the daily chart. The pair produced a bullish Marubozu candle yesterday, which closed above a significant level of resistance. If the breakout level is held by the daily chart, the pair may keep moving towards the North. Two major intraday charts look good for the bull as well. Thus, the pair may end up producing a bullish candle. Let us now have a look at three major charts.

Chart 1 EUR/JPY Daily Chart


The price had a bounce at the level of 114.500 and produced a bullish inside bar. Then, the price heads towards the North with good bullish momentum. Yesterday’s candle came out as a long bullish Marubozu candle, which breached the level of 121.200. This is a significant level, where the price reacted several times. Thus, if the breakout level is held, it may push the price towards the North further. The price may find its next resistance around 122.600.

Chart 2 EUR/JPY H4 Chart


The H4 chart shows that the price after making a strong bullish move has been in consolidation. The level of 121.700 has been working as a level of resistance, and the level of 121.280 has been working as a level of support. The level of support has already produced a bullish engulfing candle. As of writing, the price in the current candle has been slightly bearish. This suggests that the price has been in a bearish correction in the minor charts. The pair may get more bullish above the level of 121.700. The price may find its next resistance around 122.600.

Chart 3 EUR/JPY H1 Chart


The chart shows that the price made a strong bullish move and made a bearish correction. It had a bounce at the level of 121.280 and made another bullish move. The price had a rejection at 121.700 and made another bearish correction. The level of 121.280 held the price and pushed it towards the North. If the price makes a breakout at 121.700, the buyers may go long and push the price towards the North further. Since the daily and the H4 chart are bullish biased, the price in the H1 chart may make a long bullish move. However, the price may consolidate around the level of 122.000 for a while. On the other hand, if the level of resistance produces a bearish reversal candle, the pair may get bearish below the level of 121.230. The price may find its support around 120.900.

All three charts look bullish biased. Thus, the pair may end up producing a bullish daily candle. If that happens, the bull is going to keep dominating in the pair for some days.

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