- Bulls are testing bearish commitments at daily resistance.
- EUR/JPY is in the hands of the bulls given the support on the 4-hour time frame.
The cross is on a bullish trajectory, being held up for the mean time by daily resistance following a potentially healthy correction to test the 21-day EMA and a 61.8% Fibonacci retracement.
The following illustrates the prospects of an onward bullish course once the 4-hour structure is broken to the upside.
Daily chart
4-hour chart
The price has found support at the 50% mean reversion area and a confluence of the 21 and 10 EMAs coming together in a bullish formation.
A subsequent bullish crossover will be an extra conviction that will come of a test of the dynamic trendline resistance.
A break of the trendline resistance will be monitored for a restest and onwards bullish impulse on the daily chart for a fresh higher high.
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