In a recent development, the EURJPY pair has successfully formed a minor bullish channel, securing a position above the critical 161.70 support line and garnering gains that propelled it to 162.38 as of yesterday. The positive momentum indicated by stochastic readings suggests a potential continuation of bullish endeavors, with an initial target set at the 162.70 level, followed by an attempt to breach the 163.10 resistance line.
The sustainability of the current bullish trend hinges on the avoidance of a sharp decline and a negative close below the pivotal 161.30 mark. Such a scenario could mark a significant shift, initiating a corrective bearish trajectory and exposing the pair to potential losses, potentially commencing around the 160.85 level.
As traders navigate the market, the anticipated trading range for the day is expected to fluctuate between 162.00 and 162.70, providing crucial parameters for market participants to consider.
Summarizing the outlook for the day, the prevailing trend is assessed as bullish, contingent on the maintenance of key support levels and the potential breach of resistance barriers in the specified trading range. Traders are advised to exercise caution, closely monitoring price movements for any indications of a shift in market dynamics.