EUR/JPY Pair: Potential Reversal Patterns Ahead
Updated
In Monday's Asian session, the EUR/JPY pair maintains a positive stance near 162.55, trading with strength below the resistance zone of 162.00. This uptrend is fueled by investor optimism surrounding the potential shift in the Bank of Japan's (BoJ) monetary policies, expected to occur in March or April. The BoJ's upcoming interest rate decision, scheduled for Tuesday, is anticipated to provide further clarity on this matter.
From a technical standpoint, the pair is approaching key resistance levels, indicating a potential correction following the economic news. The presence of the 78.6% Fibonacci level and the Stochastic indicator in overbought territory further supports this view. As such, we are on the lookout for bearish patterns to emerge before considering a valid position for a bearish setup.
Looking ahead to Tuesday, all eyes will be on the BoJ's interest rate decision, which could offer insights into the future direction of the USD/JPY pair. Additionally, the release of the ZEW Survey data from Germany and the Eurozone will provide further trading opportunities around the EUR/JPY cross. Traders will closely analyze this data to identify potential market movements and adjust their trading strategies accordingly.
From a technical standpoint, the pair is approaching key resistance levels, indicating a potential correction following the economic news. The presence of the 78.6% Fibonacci level and the Stochastic indicator in overbought territory further supports this view. As such, we are on the lookout for bearish patterns to emerge before considering a valid position for a bearish setup.
Looking ahead to Tuesday, all eyes will be on the BoJ's interest rate decision, which could offer insights into the future direction of the USD/JPY pair. Additionally, the release of the ZEW Survey data from Germany and the Eurozone will provide further trading opportunities around the EUR/JPY cross. Traders will closely analyze this data to identify potential market movements and adjust their trading strategies accordingly.
Trade active
I suggest to move SL to entry here. 
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