The EUR/JPY Double Bottom Is A Signal For A Possible Rally

The double bottom can be seen on the D1 time frame (128.944 on 22^nd March 2018 and 129.28 on 22^nd May 2018).

Apart from that the last weekly candle is a pin bar, which confirms the scenario for a rally of this pair.

If this is a valid scenario, we could expect a move north to the first resistance at 131.50, followed by another rally to 132.50. If the pair breaks out above those resistance levels, we could expect a move up to 133.50.

Under any circumstances, however, this will be a corrective rally. To the downside there is a strong support around 127.00 and I think the pair will reach it once it’s done with the possible correction to the upside.