The EURJPY pair encountered fresh upward pressures in the previous trading session, influenced by the relative stability of the stochastic indicator near the 80 level. This development led to the formation of bullish corrective waves, resulting in the pair’s ascent above the 55-day moving average. The price is now in proximity to the resistance of the minor bearish channel at 158.05.
The forthcoming scenario hinges on the strength of the aforementioned resistance. If the price fails to achieve significant closes above this level, it would set the stage for the formation of bearish waves, targeting support levels at 157.30 and 156.75. Conversely, if the pair sustains the upward momentum and breaches the resistance, it would confirm a shift towards the bullish trajectory, potentially opening the way for several positive milestones, including levels at 158.45 and 158.90.
The expected trading range for today is likely to fluctuate between 158.00 and 157.30.
Today’s projected trend: Bearish