EUR/JPY has been extremely bullish on the daily chart. Yesterday’s candle came out as a bullish candle. However, the candle closed within a level, where the price had a rejection earlier. Thus, both the sellers and the buyers are going to keep their eyes on the pair. A bullish breakout may push the price towards the North further with more bullish momentum. On the other hand, a bearish reversal candle may drive the price towards the South. The H1 and the H4 chart are bullish biased. Let us now have a look at those three charts.
Chart 1 EUR/JPY Daily Chart
The chart shows that the price after making a bullish move had a bearish correction. It produced a Morning Star and headed towards the North with good bullish momentum. Yesterday’s candle closed within 122.600, where the daily chart had a rejection earlier. The price may consolidate here before making the next breakout. If it heads towards the North and makes a daily breakout today, then the price may get more bullish in the daily chart. On the other hand, the level may work as a daily resistance again. A strong bearish reversal candle may make the pair choppy on the daily chart.
Chart 2 EUR/JPY H4 Chart
The chart shows that the price has been in consolidation. The level of 122.070 has been working as a level of support, and the level of 122.530 has been working as a level of resistance. A breakout at the level of resistance may push the price towards the North. The price may find its next resistance around 123.800. On the other hand, a bearish breakout at the level of support may make the pair be choppy. The level of 121.575 may work as a level of support.
Chart 3 EUR/JPY H1 Chart
The chart shows that the price made a bearish correction upon making a bullish move. The level of 122.070 has been working as a flipped support. The level has produced a bullish inside bar and pushed the price towards the North. A breakout at 122.530 may attract the buyers to go long in the pair. The price may find its next resistance around 123.400. On the other hand, if the level of resistance produces a bearish reversal candle and makes a breakout at 122.070, it would be considered a breakout at the neckline of a Double Top. This may attract the sellers to go short in the pair. The price may find its next support around 121.700.
All three charts are bullish biased. However, the level of resistance may come and play its part. Let us wait and see whether the bull breaches the fence or not.