The EURJPY currency pair experienced a setback in its positive momentum during the previous session, leading to a temporary suspension of the bullish advances and the initiation of a corrective bearish rebound. This correction is aimed at testing a supplementary support level in the vicinity of 158.55. The critical factor here is the ability of the pair to hold above this support. Sustained stability above this level is likely to bolster the prospects of renewed bullish attempts, with the possibility of another assault on the 159.60 resistance level. A successful breach of this resistance could potentially trigger a continuation of the pair’s upward trajectory, setting sights on 160.60 and, subsequently, 161.35 in the medium-term perspective.
However, if the price succumbs to renewed downward pressure and breaches the current support, it could activate a corrective bearish phase, leading to potential losses with a descent toward 157.80, followed by 157.00.
For the trading day ahead, the expected range is predicted to oscillate between 158.60 and 159.60.
The prevailing sentiment for today leans toward a bullish stance, provided that the pair can maintain stability above the key support level at 158.55.