Last week, EUR/JPY consolidated above 145.00 in a triangle as we can see in the 1H chart. This apparently came after a bearish attempt as we saw price originally under the 200-, 100-, and 50-hour SMAs, and the 1H RSI below 60 with ability to tag below 30. EUR/JPY 1H Chart 12/22(click to enlarge) Bullish Breakout: However, as we begin this week, we are seeing a bullish breakout from this triangle. Price is also now above the 200-, 100-, and 50-hour SMAs, while the RSI has climbed above 70, showing bullish momentum in the near-term. As the US session got started, we saw price bounce off 146.75, further confirming the bullish breakout. Now, as the session progresses, traders will begin to see overbought condition in the near-term. We might get a pullback, but if the EUR/JPY has indeed signaled a bullish outlook, we should expect buyers down to 146.25-146.50. A break below 146.00 however signals a false bullish breakout, which translates to a bearish outlook. Now, going back to the bullish breakout, if we flip to the 4H chart, we can see that EUR/JPY has also broken a falling channel consolidation resistance. EUR/JPY 4H Chart 12/22(click to enlarge)Bullish Continuation: The 4H chart shows the break above a falling line from 149.78, the high on the year. This suggests a shift from the December bearish correction mode. What's missing is a break above the 100-period SMA around 147.35 and the 4H RSI above 60. We don't have all the clues for a bullish continuation yet, but as far as price action is concerned, the break above a couple of key resistance factors should suggest a good chance of price attacking the 148.00 resistance area, with risk of pushing towards the 149.70-80 area.