EURJPY โ False breakout of resistance. Reversal?FX:EURJPY is testing the resistance of the trading range as part of a distribution movement, but the situation ends with a false breakout and price consolidation within the flat.
Against the backdrop of the falling dollar, the Japanese yen is strengthening and thus exerting a corresponding influence on the currency pair. EURJPY is forming a false breakout of resistance within a distribution movement formed after a retest the support of the flat. The price returns to the channel. After a false breakout of resistance and a return of the price below a strong key level, a base is forming in the form of support at 163.2 (trigger).
Resistance levels: 163.4, 163.6
Support levels: 163.2, 162.7
A breakdown of the 163.2 trigger and price consolidation below the key level could intensify the sell-off, triggering a further decline.
Best regards, R. Linda!
JPYEUR trade ideas
EURJPY: Top-Down Analysis & Trading PlanEURJPY has surpassed and closed above a significant daily resistance level, which has now become support.
We are observing a retest of this broken structure.
To enter a long position, look for confirmation through a breakout of the horizontal range on the hourly chart.
A close of an hourly candle above its resistance will signal buyer strength.
A bullish continuation is expected towards the 164.63 level.
Lingrid | EURJPY support Zone Buy Setup in Sideways MarketThe price perfectly fulfilled my previous idea . FX:EURJPY is currently hovering above the 162.810 breakout level after reclaiming it following a fake breakout to the downside. The price action forms a potential higher low above the upward trendline, suggesting bullish continuation is in play. A successful bounce here could aim for 164.450 as the next resistance test. Momentum will likely pick up if the price stays above the rising trendline.
๐ Key Levels
Buy zone: 162.810
Buy trigger: bullish candle bounce above trendline
Target: 164.450
Sell trigger: daily close below 162.810
๐ก Risks
Trendline failure would negate bullish structure
Resistance at 164.450 could attract sellers
Consolidation may extend before a breakout confirms direction
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad ๐ฉโ๐ป
EURJPY: Japan's (MoF) may reduce its issuance of long-term bondsEURJPY: The Japanese yen falls as Japan's Ministry of Finance (MoF) may reduce its issuance of long-term bonds.
Today, the Japanese yen is the worst-performing currency across the board.
The decline is linked to speculation that Japanโs Ministry of Finance (MoF) may reduce long-term bond issuance due to weak demand and rising yields.
This speculation stems from a rare questionnaire the MoF sent to market participants, asking for their views on issuance and overall market conditions. The move was seen as unusual, fueling concerns about potential changes in Japanโs bond strategy.
Technical Analysis
EUR/JPY has broken out of a complex inverse head and shoulders pattern, with the above news acting as a catalyst for its bullish momentum.
While the price may take a short pause, further upside remains likely, with targets at 164.30 and 165.00.
You may find more details in the chart!
Thank you and Good Luck!
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EURJOY Can continue to fall and Excite trigger moving EUR/JPY testing a key resistance level within a trading range. However, the recent attempt to break above this level resulted in a false breakout, followed by price consolidation within a flat structure.
Amid a weakening U.S. dollar and a strengthening Japanese yen, the pair is experiencing cross-currency pressure. This has led to the formation of a strong support base around the 163.000 and 162.200 levels.
Please note that and share your thoughts in comments for more analysis Thanks.
EURJPY could be about to soarThe price is stuck in a large ascending triangle pattern. But with stocks moving higher, cryptocurrencies gaining momentum, and the trade war easing, could this pattern finally break? Watch the video to see which levels matter.
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EURJPY: Important Breakout ๐ช๐บ๐ฏ๐ต
EURJPY broke a significant resistance cluster on a daily.
We see its retest now.
I think that the price will start rising from that and reach
at least 164.5 level.
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EURJPY: Move Up Ahead! ๐ช๐บ๐ฏ๐ต
EURJPY is going to rise more after breaking
a resistance line of a tiny horizontal consolidation range
that was formed on a retest of a recently broken daily structure.
Goal - 164.8
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Bearish reversal?EUR/JPY is rising towards the resistance level which is an overlap resistance that lines up with the 50% Fibonacci retracement and could drop from this level to our take profit.
Entry: 163.18
Why we like it:
There is an overlap resistance level that lines up with the 50% Fibonacci retracement.
Stop loss: 163.18
Why we like it:
There is a pullback resistance level that is slightly above the 61.8% Fibonacci retracement.
Take profit: 161.61
Why we like it:
There is a pullback support level.
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EUR/JPY Technical Breakdown: Rising Wedge Breakdown + Target๐บ 1. Rising Wedge Pattern Explained
A Rising Wedge is formed when:
Price action creates higher highs and higher lows, but
The slope of the support line is steeper than the resistance line.
This signals that buyers are losing strength, and momentum is fading.
In this chart:
The wedge began forming around mid-February 2025.
Price was compressing within converging trendlines.
After multiple failed breakouts near resistance (~165.50), the pair finally broke below the lower trendline, confirming a bearish breakout.
This pattern is considered reliable because it traps late buyers and shifts sentiment from bullish to bearish quickly once the lower boundary is breached.
๐ป 2. Key Technical Zones
๐ Major Resistance Zone (~165.00 โ 166.00)
Strong supply area; price has rejected here multiple times since late 2023.
Resistance was confirmed again during the wedge formation.
High volume spike noted near this level, followed by a steep dropโevidence of distribution and smart money exiting long positions.
๐ Major Support Zone (~156.00 โ 157.00)
Historically held as a demand zone.
Previous bounces suggest it is structurally significant.
However, repeated tests can weaken the zone, increasing the likelihood of a breakdown.
๐ฏ Target Price: 153.433
Measured by taking the height of the wedge and projecting it from the breakout point.
Coincides with a previously tested level (support turned target).
Bears could aim for this level as a swing target.
๐ 3. Market Psychology Behind the Pattern
As price climbs inside a rising wedge, volume often declines, showing buyer exhaustion.
False breakouts near the top of the wedge trap breakout traders, adding fuel to the downside move once price breaks the lower boundary.
The sharp selloff post-breakout is often driven by stop-loss cascades and aggressive short positioning.
๐ 4. Potential Price Path & Trade Plan
Retest in Progress: Price may retest the broken wedge support (now resistance) near 163.00โ164.00 before further decline. This retest zone offers a high-probability short entry opportunity with tight risk management.
Immediate Downside Levels: 160.00 (psychological level), 157.00 (support zone), and final target at 153.43.
Bearish Continuation Scenario: If the pair maintains below the wedge and forms lower highs, it confirms ongoing bearish sentiment.
๐ 5. Risk Factors to Monitor
ECB or BOJ monetary policy shifts (rate cuts/hikes, yield curve control updates).
Risk-on vs risk-off flows, especially in times of geopolitical or macroeconomic shocks.
Intervention by the Bank of Japan to protect JPY from excessive weakening.
โ
Conclusion: A Tactical Short Opportunity
The EUR/JPY chart is setting up for a potential medium-term short swing trade following a confirmed rising wedge breakdown. With clear rejection from a long-standing resistance zone and fading bullish momentum, the technicals align for a move toward 153.43 over the coming weeks.
Traders should watch for clean retests and structure-based entries, managing risk around 164.50 with profit-taking at key support zones along the path.
EURJPYEUR/JPY Economic Data, Bond Yields, and Carry Trade Analysis (May 25โ31, 2025)
Key Economic Data Releases (May 25โ31, 2025)
Date Time (UTC) Region Event Impact Previous Consensus
May 25 18:40 USD Fed Chair Powell Speech High โ โ
May 25 23:01 EUR Consumer Confidence (May) Low 58.7 59.1
May 26 05:00 EUR PPI YoY (Apr) Low 0.5% 1.1%
May 26 05:00 JPY Leading Economic Index (Mar) Low 108.2 107.7
May 26 05:00 JPY Coincident Index (Mar) Low 117.3 116.0
May 26 10:00 EUR Balance of Trade (Mar) Low -โฌ0.61B -โฌ0.68B
May 28 06:45 EUR GDP Growth Rate QoQ (Q1) Low -0.1% 0.1%
May 28 07:55 EUR Unemployment Rate (May) High 6.3% 6.3%
May 29 05:00 JPY Consumer Confidence (May) High 31.2 31.8
May 29 23:30 JPY Tokyo Core CPI YoY (May) Low 3.4% 3.5%
Key Focus: Eurozone unemployment (May 28) and Japanese consumer confidence (May 29) are high-impact events. Fed Chair Powellโs speech (May 25) may also influence USD-driven crosswinds in EUR/JPY.
10-Year Bond Yields (as of May 22โ24, 2025)
Eurozone 10-Year Yield: 3.17% (up from 3.15% previous day, 3.10% YoY) .
Japan 10-Year JGB Yield: 1.57% (up from 1.53% previous day, 1.01% YoY) .
Interest Rate Differential:3.17%(EUR)โ1.57% (JPY)=+1.60% the 3.17% (EUR)โ1.57% (JPY)=+1.60%
Carry Trade Advantage
The 1.60% yield spread favors the euro, making EUR/JPY attractive for carry trades. Investors borrow JPY at low rates and invest in EUR-denominated assets to profit from the differential.
Key Considerations:
Upcoming Data Impact:
Stronger-than-expected Eurozone data (e.g., GDP, unemployment) could widen the yield spread, boosting EUR/JPY.
Higher Japanese CPI or consumer confidence might tighten BoJ policy, raising JGB yields and narrowing the spread.
Technical Outlook:
EUR/JPY is sensitive to risk sentiment. Geopolitical tensions or USD volatility (from Powellโs speech) could disrupt carry trade flows.
Historical Context:
The Eurozone yield is above its long-term average (2.48%) , while Japanโs remains below its average (2.06%) , reflecting divergent monetary policies.
Summary Table
Metric Eurozone (EURO Japan (JPY)
10-Year Bond Yield 3.17% 1.57%
Interest Rate Differential +1.60% โ
Key Economic Events Unemployment, GDP Consumer Confidence, CPI
Conclusion
The EUR/JPY pair is supported by a 1.60% yield differential, favoring carry trades. However, upcoming Eurozone unemployment data (May 28) and Japanese consumer confidence (May 29) could shift bond yields and the exchange rate. Traders should monitor these releases alongside broader risk sentiment to assess carry trade viability.
#EURJPY
EURJPY Ascending channel and bullish fvg ๐จ EURJPY Trade Setup ๐จ
4H Timeframe Analysis by Livia ๐
๐น Pair: EURJPY
๐ Structure: Ascending Channel respected โ
๐ Breakout: Confirmed above Bullish FVG โ retest successful ๐ฅ
๐ Entry Zone: 163.200 (Minor Support Holding)
๐ Bias: Strong Bullish Momentum in play
๐ฏ Technical Target:
1๏ธโฃ 165.000 โ Next Key Resistance Level
๐ Risk Managed โ Watching PA for continuation or pullback setups.
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