A Bearish Turn for EUR/JPY

By Tomasz Wisniewski|

Published: January 09 2024, 06:15 GMT+0

A Bearish Turn for EUR/JPY

Welcome back traders, as we embark on a new week of market analysis. Today, we turn our attention to the Euro to Japanese Yen, a pair that has recently showcased a fascinating market pattern, emblematic of the ever-shifting tides of Forex trading.

The previous week’s trading session for the Euro to Japanese Yen was nothing short of a rollercoaster. Initially, the pair exhibited a robust bullish run, swiftly ascending from its local troughs to brush against long-term peak values. This surge, however, was met with an unexpected twist towards the week’s closure.

In what appeared to be a momentous breakthrough, the pair breached the crucial horizontal resistance level at 158.5 (green), a threshold that had stood unyielding throughout December. But triumph was short-lived. The pair, failing to anchor itself above this pivotal mark, retreated beneath it, painting a vivid picture of a false breakout (yellow). This scenario was further cemented when the pair retested the 158.5 level as resistance and faced rejection, subsequently dipping lower.

This false breakout has set a bearish tone for the pair. Looking ahead, the next point of interest is the black uptrend line that has been connecting higher lows since the 7th of December. Given the current market trajectory, it seems increasingly likely that the pair might be heading towards this line, signaling a potential shift in the short-term trend.

Source: https://www.axiory.com/analytics/technical-analysis/a-bearish-turn-for-eur-jpy