EURJPY 4H | Bullish Breakout & Retest – Next Big Move?The EUR/JPY 4-hour chart presents a compelling bullish breakout setup following a structured downtrend. The market recently broke through a significant resistance zone, indicating potential further upside movement. This analysis outlines key price levels, market structure, and an actionable trading plan.
📊 Market Structure Overview
🔸 Downtrend Reversal: The price was previously trading within a descending channel (highlighted in green), forming lower highs and lower lows.
🔸 Support Confirmation : The price bounced from a strong support zone around 158.500 - 160.000, confirming buyers' interest in this region.
🔸 Breakout & Retest : A strong bullish impulse broke through the 164.500 - 165.000 resistance zone, suggesting a shift in market sentiment.
📌 Key Trading Levels
🔹 Support Zone: 158.500 - 160.000
This area previously acted as a demand zone where buyers aggressively pushed the price higher.
It now serves as a safety net for long positions.
🔹 Resistance Zone (Now Potential Support): 164.500 - 165.000
Price has broken above this level, but a retest could provide an ideal entry for confirmation.
🔹 Next Major Resistance (Target Levels):
TP1: 165.000 → A psychological level and previous resistance.
TP2: 166.020 → A higher resistance zone where price may struggle to break through.
📈 Trading Plan – Long Setup
✅ Entry Confirmation:
Wait for price to pull back to the 164.500 - 165.000 zone.
Look for bullish candlestick patterns (e.g., pin bars, engulfing candles) to confirm buyers stepping in.
🎯 Take Profit Targets:
TP1: 165.000 (Initial resistance level)
TP2: 166.020 (Potential extended bullish move)
🛑 Stop Loss Strategy:
Below 160.038 (Previous structure low & key support level)
Ensures protection against potential fakeouts or trend reversals.
📢 Risk-Reward Ratio:
Aiming for 2:1 or better risk-reward ratio for an optimal trade setup.
📝 Market Outlook & Conclusion
📌 The recent breakout above resistance suggests bullish momentum is strong. However, traders should be patient and wait for a pullback to enter at a better risk-reward level. If price successfully retests and holds above 164.500, there is a high probability of continuation towards 166.020.
🚀 Trading Bias: Bullish – Until market structure shifts or a major rejection occurs at resistance.
📢 Final Trading Tip
🔹 Patience is key! Don’t rush into a trade immediately after a breakout. Wait for confirmation, as false breakouts are common in volatile markets. A successful retest of the broken resistance will provide a low-risk, high-reward entry opportunity.
