The EUR/JPY pair, on the 4-hour chart, exhibits a strong bullish impulse that recently peaked around 163.64, aligning with a key Fibonacci extension level (1.618). This area marks a critical resistance zone, where price action has shown signs of rejection.
The Harmonic pattern, such as the b]Crab, suggest potential exhaustion of the uptrend. The latest leg upward reached a 2.618 extension, reinforcing the possibility of a corrective move. Support levels to monitor include **162.23** (BC) and **160.59** (T1), which could serve as downside targets if bearish momentum gains traction.
For traders, a decisive break above **163.64** could invalidate the short-term bearish bias, paving the way for further upside. Conversely, sustained rejection from this level may trigger a deeper retracement towards key Fibonacci and harmonic support zones.
Conclusion: The pair is at a critical inflection point, where price action and confirmation of rejection signals will determine the next directional move. Traders should watch for price action at resistance and key support levels to assess trade opportunities.
The Harmonic pattern, such as the b]Crab, suggest potential exhaustion of the uptrend. The latest leg upward reached a 2.618 extension, reinforcing the possibility of a corrective move. Support levels to monitor include **162.23** (BC) and **160.59** (T1), which could serve as downside targets if bearish momentum gains traction.
For traders, a decisive break above **163.64** could invalidate the short-term bearish bias, paving the way for further upside. Conversely, sustained rejection from this level may trigger a deeper retracement towards key Fibonacci and harmonic support zones.
Conclusion: The pair is at a critical inflection point, where price action and confirmation of rejection signals will determine the next directional move. Traders should watch for price action at resistance and key support levels to assess trade opportunities.
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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.