EUR/JPY is having trouble making new lows below a mid-channel support zone.
Think the pair has hit bottom this week?
Check out what’s cookin’ on the 4-hour time frame!
EUR/JPY 4-hour Forex Chart by TradingView
The euro slipped a bit against the yen earlier this week, even after some upbeat mid-tier data out of the Euro Area.
The move likely had more to do with yen strength than euro weakness. Traders turned less cautious after Trump and Takaichi’s meeting eased U.S.-Japan trade tensions, while Japanese officials’ comments on studying the impact of yen weakness revived talk of possible intervention.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Euro and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
How low can EUR/JPY go before the bulls jump back in?
The pair has been slipping since turning lower from the 178.50 area and is now hanging around 177.00, which lines up with the 100 SMA on the 4-hour chart. That zone also sits right near the Pivot Point at 176.93 and the midline of the ascending channel that’s been guiding price all month.
If we start seeing green candles and steady action above 177.00, that could set EUR/JPY up for another shot at the 178.50 October highs, maybe even new monthly peaks.
But if the pair breaks below the 100 SMA and mid-channel support, the next area to watch sits around 175.50 to 176.00, where previous buyers stepped in.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
