EURJPY Weekly Analysis and OutlookEURJPY Weekly Analysis and Outlook
This week, the EURJPY pair is expected to undergo a significant price correction before resuming its upward movement. This deep correction phase indicates a potential retracement in the short term, offering a strategic opportunity for traders to reassess their positions.
Current Market Overview:
The EURJPY pair has been demonstrating strong upward momentum over the past few weeks. However, recent price action suggests that a correction phase is imminent. As the market opens we expect the price to move higher a little bit above the resistance zone and then drop back below resistance zone to find support near the key support zone. As the pair approaches key support levels, traders should closely monitor the price action to identify potential reversal points. This corrective movement is seen as a natural part of the broader bullish trend, allowing the market to consolidate gains before making another push higher.
Expectations and Potential Scenarios:
Upon completing the anticipated deep price correction, we expect the EURJPY pair to resume its upward trajectory. This correction phase could provide traders with a more favorable entry point for long positions, aligning with the broader bullish outlook.
Primary Expectation: After finding support during the correction phase, the price is likely to sustain its upward movement, potentially targeting higher resistance levels. This scenario would reinforce the bullish outlook, making it a favorable environment for long positions once the correction completes.
Alternative Scenario: If the price fails to find strong support during the correction and continues to fall, traders should be prepared for an extended pullback. This scenario might provide opportunities to reassess entry points at lower levels before the pair resumes its upward trend.
Conclusion:
In summary, the EURJPY pair is poised for a significant price correction in the coming week, followed by a resumption of its upward movement. Traders should watch for decisive support levels during the correction phase, which could serve as a catalyst for continued gains once the correction is complete. Maintaining awareness of both bullish and corrective scenarios will be crucial for effective trading strategies. Therefore our expectation on this pair remains neutral as both sides of seller and buyers could have equal chances of capitalizing on the price movement at different key levels as long as our forecast remains valid. Stay updated with market developments and adjust your positions accordingly.
By Piptera Digital Solutions,
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