Over the past five trading sessions, the EUR/JPY pair has climbed nearly 2% in favor of the euro, once again reaching a key resistance zone in the short term. For now, the bullish bias remains intact, driven by the weakened yen, which has lost demand in recent sessions. As a safe-haven currency, the yen has struggled to hold investor interest as trade tensions ease and market confidence rebounds.
Wide Lateral Range
Since 2024, EUR/JPY has maintained a broad lateral channel, bounded by resistance at 165.315 and support at 156.656. Recent buying momentum has brought the price back to the upper end of the range, and if bullish pressure continues, a breakout could occur—potentially giving way to a more sustained uptrend in the short term.
Technical Indicators:
ADX:The ADX line continues to hover below the neutral level of 20, signaling low volatility in recent movements. If the ADX fails to break above that level, a persistent state of neutrality may continue to dominate price action in the short term.
TRIX:The TRIX line remains above zero, but it shows a flattened curve, indicating the absence of a clear directional trend in the exponential moving averages. This opens the door for a neutral phase to develop at current resistance levels.
Key Levels to Watch:
Written by Julian Pineda, CFA – Market Analyst
Wide Lateral Range
Since 2024, EUR/JPY has maintained a broad lateral channel, bounded by resistance at 165.315 and support at 156.656. Recent buying momentum has brought the price back to the upper end of the range, and if bullish pressure continues, a breakout could occur—potentially giving way to a more sustained uptrend in the short term.
Technical Indicators:
ADX:The ADX line continues to hover below the neutral level of 20, signaling low volatility in recent movements. If the ADX fails to break above that level, a persistent state of neutrality may continue to dominate price action in the short term.
TRIX:The TRIX line remains above zero, but it shows a flattened curve, indicating the absence of a clear directional trend in the exponential moving averages. This opens the door for a neutral phase to develop at current resistance levels.
Key Levels to Watch:
- 165.315 – Major Resistance: Marks the upper boundary of the lateral range. Sustained bullish momentum above this level could lead to a stronger uptrend in the near term.
- 162.225 – Nearby Support: Aligns with the neutral zone of the past two weeks. May act as a barrier for short-term pullbacks.
- 160.655 – Critical Support: Corresponds to the midpoint of the current channel and aligns with the Ichimoku cloud area. A return to this level could undermine the current bullish structure and reinforce the broader sideways range.
Written by Julian Pineda, CFA – Market Analyst
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.
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.