EUR/JPY 1H Chart: Double Bottom

A precipitous decline and subsequent formation of two distinct valleys suggest EUR/JPY has already bottomed out. Still, in order to confirm its bullish intentions the currency pair is required to settle above the neck-line at 138.52, which is reinforced by the daily R1. Then the subsequent objective will be a cluster of resistances at 138.72, where the daily R2 merges with the 200-hour SMA and could potentially prevent further appreciation of the single European currency. And while the near-term technical studies support this view, the daily indicators are mostly giving ‘sell' signals, thereby calling into question EUR/JPY's ability to reach Jun 8 high standing next to 140.