EUR/JPY Price Analysis: With less than 24hrs to go, bulls so far, so good

• EUR/JPY is on track  to close the week in bullish territory.
• The weekly resistance poses a risk, but the daily charts are irresistible.  

EUR/JPY is moving through the bearish ranks on the daily chart, starting with the 38.2% Fibonacci retracement which may hold and create a higher right-hand shoulder of a reverse head and shoulder pattern.  

It would be encouraging to see less volume on the offer at that juncture.  

However, on a break below, there are prospects of a deeper retracement for a 50% mean reversion to complete the right-hand shoulder of the  reverse head and shoulders.

This would be preferable for bulls as the risk to reward would be more favourable in the next expected bullish impulse.  

Daily chart

As it stands, there could be a phase of consolidation in the completion of the right-hand shoulder around the 38.2% Fibo.

If so, the bulls will be waiting for bullish conditions on the lower time frames and for a bullish structure to form from which a high probability setup could be made for an optimal entry point protected by a stop loss.

From the base of the correction, a -272%  Fibonacci target brings in 125.50 to focus.  

However, we have weekly resistance at 124.80 to be watchful for. But a well-managed position will already be at breakeven at that juncture.  

We have less than 24-hours until the close and bulls will be looking for a bullish close for extra conviction, as the weekly wick would be expected to be filled on from the new daily bullish impulse.