The D1 chart today shows a potential engulfing bearish candle which could signal from the markets that this pair is heading further downwards to 118.6 before retracing back up to 122 and breaking the previous high to 125. The EMA 80 / 120 / 200 is still trending upwards while the lower trendline of this technical analysis is still in play. While 120.3 was a good resistance, this pair is still strongly bullish and thus traders may want to be weary about shorting this pair as this daily candle can and might retrace back to the open of the day. The ADX is gaining strength for the day as it is pointed upwards, suggesting a good bullish movement.
The H4 chart shows a sharp bearish movement upon hitting the 120.3 level. With a fibonacci expansion drawn at the first wave of support, it is seen that the next level of support is at the 141.4% at 119.25~ which is when a strong rebound will occur as it coincides with a previous support at 119.2 in previous analysis. The Stochastic Oscillator is reaching the oversold area, which suggests a possible long opportunity for buyers who are looking for a good entry. With the ADX pointing upwards in a good trend strength level and the 200 EMA as a support, this is a strong supported buy indeed.
The H1 chart shows this in greater detail as a ranging candle appears at the 119.5 level immediately upon a strong bearish movement. This is indicative of a strong support at 119.5 for the failure of a wave to break the strong support shows good evidence for a long as well. the 20 EMA / 50 EMA are now above the 200 EMA but it is almost cutting one another which suggests a possible bearish movement. However, with most signs pointing to bullish movements, it would be very risky for a short at this time.
Always use Stop losses and be safe!
Good luck all