The EURJPY pair has managed to hold above the support line of the bearish channel at 160.60, prompting a corrective bullish move. This has allowed the price to recover some losses, with a target of 161.70 in sight.
However, this bullish rebound does not alter the underlying bearish trend, as resistance remains at 163.25. Additionally, the 38.2% Fibonacci retracement level at 162.35 continues to act as a significant barrier. As a result, we expect the pair to regain negative momentum and potentially revisit the bearish channel’s support line. A confirmed break below this support could drive the price toward further targets at 160.00 and 159.35.
The expected trading range for today is between 160.60 and 162.30.
Trend Forecast: Bearish
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