EUR/JPY is a few pips away from a major resistance zone!
Think we’ll see an upside breakout in the next trading sessions?
Or will the bears attack and keep the pair inside its 150-pip range?
EUR/JPY: 4-hour
EUR/JPY 4-hour Forex Chart by TradingView
The Japanese yen has had a rough start to December as growing expectations for Fed rate cuts keep risk appetite elevated and take the shine off safe havens like the yen.
At the same time, steady messaging from European Central Bank officials has supported euro demand, even as the Euro Area continues to churn out mixed mid-tier data.
EUR/JPY has been trending higher since June, but the move stalled around 181.50. That’s right, the pair has been stuck in a tight 180.00 – 181.50 range since mid-November as traders wait for a fresh catalyst.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Euro and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
A retest of 181.50 is worth watching, especially with that level sitting just under the R1 Pivot Point at 181.72 and lining up with the same range ceiling that has held firm for weeks. A clean push through this zone would reopen the path toward higher ground.
But if sellers show up instead and the pair slips back under 181.50 with some conviction, EUR/JPY could ease toward the 180.75 mid-range area, and a stronger pullback could drag it toward the 180.00 support zone.
What do you think? Which way will EUR/JPY go next?
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.