EUR/JPY seems to have found its support from where it has been heading towards the North for the last few days. The pair produced a daily doji candle last Tuesday. Since then, the price has been bullish but has lost its momentum a little. Nevertheless, the pair may keep going towards the upside if the price makes a breakout on the intraday charts.
The chart shows that the price has found its support at the level of 120.420. It consolidated at the level for a while. Then it has been heading towards the North by producing consecutive bullish candles. The last three candles are bullish biased having tiny bullish bodies. As mentioned, any bullish breakout on the intraday charts may push the price towards the North further with good bullish momentum. Today’s intraday charts make things interesting. The H4 chart looks choppy, whereas the H1 chart looks a bit bullish biased. Let us have a look at them.
The H4 chart shows that the price has been roaming around within two horizontal levels. The level of 122.515 has been working as the level of support, and the level of 122.845 has been working as the level of resistance. The price may consolidate more within this level as far as the H4 chart’s price action is concerned.
The chart shows that the price is about to produce a double bottom at the level of 122.650. As of writing, the last candle is not finished yet. If it comes out as a bullish engulfing candle, the buyers may wait for an upside breakout at the level of 122.845 to go long on the pair. The price may find its next resistance at the level of 123.530. On the other hand, if the price comes down and makes a bearish breakout at the level of 122.650, it may find its next support at the level of 122.160. Considering the risk-reward and daily trend, the buyers have the upper hand.
The daily and the H1 charts look suitable for the buyers. The H4 chart is neutral so far, but it may get bullish soon as well. The daily chart also shows that the nearest significant swing high is at the level of 126.700. This is going to be another factor, which may attract the buyers to look for long opportunities on the pair.
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