The EURJPY pair is one of the most interesting assets to watch.
Overall, the long-term trend has shifted from strongly bullish to neutral since the highs of July 2024. However, we can observe that each successive bullish rebound is reaching lower highs.
With the ECB lowering interest rates and the recent rate hikes by the Bank of Japan, a rebalancing is gradually taking place. As a result, at best, we can expect a range-bound movement between 156.00 and 164.00 in the coming weeks, and at worst, a sustained decline in the exchange rate in favor of the yen.
Holding yen long-term is not attractive from a swap perspective, but in the short term, attempting bearish rebounds is more interesting.
Here, I initiated a short trade, betting on a continuation of the downtrend after the pair rebounded from the 0.618 Fibonacci retracement zone. Historically, this level is significant and acts as resistance when trends establish themselves.
Overall, the long-term trend has shifted from strongly bullish to neutral since the highs of July 2024. However, we can observe that each successive bullish rebound is reaching lower highs.
With the ECB lowering interest rates and the recent rate hikes by the Bank of Japan, a rebalancing is gradually taking place. As a result, at best, we can expect a range-bound movement between 156.00 and 164.00 in the coming weeks, and at worst, a sustained decline in the exchange rate in favor of the yen.
Holding yen long-term is not attractive from a swap perspective, but in the short term, attempting bearish rebounds is more interesting.
Here, I initiated a short trade, betting on a continuation of the downtrend after the pair rebounded from the 0.618 Fibonacci retracement zone. Historically, this level is significant and acts as resistance when trends establish themselves.
Trade closed: target reached
My free forex signals in real time: bit.ly/3RTlKwZ
My track record: bit.ly/4jFJ6nj
My track record: bit.ly/4jFJ6nj
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
My free forex signals in real time: bit.ly/3RTlKwZ
My track record: bit.ly/4jFJ6nj
My track record: bit.ly/4jFJ6nj
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.