EUR/JPY Price Analysis: Bulls on guard for next upside impulse

EUR/JPY is offering a mixed outlook without any confirmation of a directional bias one way of the other.

However, it is a cross that is worth monitoring considering the weakness in the greenback and the euro picking up a strong bid. 

The US dollar has fallen to a 27-month low leaving EUR/USD RSI into the overbought territory as confirmation that the momentum is with the bulls. 

Meanwhile, the daily chart is the most compelling as the price pulls back towards support. Coupled with the 4HR time frame and a potential reversal pattern taking shape bulls stand on guard. 

Monthly chart

The monthly chart attracts sellers towards old resistance structure.

Daily chart

However, there are bullish prospects on the daily chart while price holds above daily support structure. 

On a break to the downside, there could be an evolution of a bearish head and shoulders top formation in the making. 

4HR chart

On the other hand, a reversal head and shoulders pattern could be in the making here which would help to solidify the bullish prospects.