Bulls committing to critical hourly support
- EUR / JPY bulls are trying to take matters into their own hands over time.
- The cross forms a support area on the daily and hourly charts.
Price embarks on the 38.2% Fibonacci retracement level which meets the old resistance at the confluence of the support structure. If the bulls engage here then the focus will be on an upward extension towards previous resistance the next 129.80 / 00. On a breakout of this level, then a bearish bias will start to take shape:
EUR / JPY H1 Chart
EUR / JPY weekly chart
The above is a weekly chart that takes into account the long term support that has formed over the past several months. This gives rise to a bullish bias, at least in the short term. However, this in no way supports the immanent case of the hourly chart’s bullish trajectory, as there is plenty of room for deeper consolidation below the current market level. However, this reinforces the overall bullish outlook.
Meanwhile, the daily outlook could be forecast as follows:
If the bulls engage here then there is room for another test of the previous highs, but the current rally is hardly convincing against the previous daily bearish candle. That being said, the bulls had a strong performance during this candle which left a bullish shadow from which the price extended higher.