The EURJPY pair recently yielded to upward pressure, driven by stochastic approaching the 80 level. This led to the formation of a bullish rally, with the pair reaching the 23.6% Fibonacci correction level at 158.50 and subsequently consolidating below this point.
It’s crucial to highlight the ongoing stability above the 157.10 level, which is actively attempting to establish additional support against the current market conditions. Moreover, the sustained positive momentum, as indicated by stochastic, enhances the likelihood of breaking the 158.50 resistance level. This achievement would signify a successful restoration of the bullish bias, with the pair settling within the confines of the bullish channel. The initial target in this scenario would be the 159.20 level.
However, a downside scenario could unfold if the pair declines below the key support at 157.10, accompanied by a negative closing. Such a development would activate the bearish trajectory, subjecting the pair to potential losses that might commence at 155.95.
In today’s trading sessions, the expected range is between 157.35 and 158.80, with the overall anticipated trend leaning towards a bullish bias. Traders should closely monitor price movements and key levels for potential trading opportunities.