EUR/JPY Is Bullish

EUR/JPY formed multiple candlesticks on the weekly time frame indicating a new move to the upside – namely, an impressive hammer candlestick, a pair of inverted hammer candlesticks, a doji candlestick and another hammer candlestick, all above the support at 124.80. After so many signals for a rally it would have been surprising if the pair continued moving to the downside.

The rally has already begun and the pair is testing the resistance at 131.45. A breakout above that level could lead to a further move to the upside towards the last high at 133.50. A breakout above that resistance too could be signal for a rally to 137.50.