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EUR/JPY: Has the Bear found its resistance?

EagleFX

EUR/JPY has been bearish for the last two trading days. Yesterday’s candle came out as a bearish candle with a tiny bearish body having a long upper shadow. The daily chart made a long bearish move earlier and then had a bullish correction. Thus, the pair may get bearish again and make a new lower low. The H4 and the H1 chart are bearish biased as well. Let us have a look at those three charts.

Chart 1 EUR/JPY Daily Chart


The chart shows that the price produced an evening star and made a strong bearish move. On its way, it consolidated around 121.600 and continued its bearish move. Upon finding its support, the price headed towards the North and had a rejection at the level of 121.600. The level produced two bearish candles, and both had rejection at the level. The sellers may wait to go short in the pair below yesterday’s lowest low and drive the price towards the South. The price may find its support around 119.340.

Chart 2 EUR/JPY H4 Chart


The chart shows that the price had a rejection at the level of 121.475 twice. At the second bounce, the price produced a bearish inside bar. Since then, it has been heading towards the South. If it makes a breakout at the level of 120.520, the sellers may go short in the pair and drive the price towards the South with good bearish momentum. The price may find its next support around 119.800. On the contrary, if the price bounces at the level of 120.520, then the buyers may wait to go long above the level of 121.475.

Chart 3 EUR/JPY H1 Chart


The chart shows that the price has been in consolidation within 120.920-120.730. It had a rejection at the level of 120.920 and produced two bearish candles. The sellers may go short in the pair below the level of 120.730. The price may find its next support around the level of 120.230. On the other hand, if the price bounces at the level of 730, the buyers may go long in the pair above the level of 120.920.

Considering the daily chart, it seems that two major intraday charts may make a bearish breakout at head towards the South. The daily chart’s major support is not too far away. However, it has some space for the price for traveling towards the South. Thus, the bear slightly has an advantage. Let us now wait and see what happens today.

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