- EUR/JPY bulls are trying to take charge across the time frames.
- The cross is forming a support area on the daily and hourly charts.
The price is embarking on the 38.2% Fibonacci retracement level that meets old resistance as a confluence of the support structure. If the bulls commit to here, then the focus will be an upside extension towards the prior resistance next 129.80/00. On a break of this level, then a downside bias will start to take its form:
EUR/JPY H1 chart
EUR/JPY weekly chart
The above is a weekly chart that takes into account the long term support that has been forming over the past few months. This gives rise to an upside bias, at least for the near term. However, it by no means support the immanent case for the hourly chart's bullish trajectory, for there is plenty of room for a deeper consolidation below the current market level. However, it does solidify the overall bullish outlook.
Meanwhile, the daily outlook could be forecasted as follows:
If the bulls commit here, then there is the case for another test of the prior highs, but the current rally is hardly convincing compared to the prior daily bearish candle. With that being said, the bulls put in a strong performance during that candle that left a bullish shadow from which the price has extended higher.
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