Earlier this month, we spotted a trading opportunity when EUR/JPY tested a long-term support zone.
Since then, the pair jumped about 500 pips before pulling back to retest that support area.
Let’s see if the bulls can hold the line again.
EUR/JPY Daily Forex Chart by TradingView
The Japanese yen stole the show last week, riding a wave of safe-haven demand and getting a boost from Japanese officials hinting at more interest rate hikes.
Meanwhile, the euro struggled as traders worried about Europe’s exposure to potential U.S. tariffs and the uncertainty surrounding the German elections.
All eyes are on this week’s headlines to see if they’ll shift the momentum for EUR/JPY.
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 Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Right now, EUR/JPY is showing a green candlestick about 100 pips above the 156.00 range support, a level that hasn’t cracked since August 2023.
If today’s candle closes green and the pair keeps printing green candlesticks, we could see enough buying pressure to push EUR/JPY back to the 160.00 mid-range—or even up to the previous highs around 166.00.
But if bullish momentum fizzles and the 156.00 psychological level doesn’t hold as support, the pair might slip under 155.00, attracting sellers who could drive it toward lower targets like 154.00 or 152.00.
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!