The euro has appreciated more than 1.5% against the Japanese yen over the last two sessions, and the growing bullish momentum in EUR/JPY has been driven mainly by renewed confidence in the euro following the recent weakness in the U.S. dollar. Additionally, the yen has come under downward pressure due to a reduction in safe-haven demand, prompted by Trump’s recent comments suggesting a pause in most tariffs targeting dozens of countries previously threatened in recent weeks. As the trade situation begins to stabilize, bullish pressure on EUR/JPY could become increasingly relevant in the short term.
Broad Sideways Range:
Since early August, a key sideways channel has taken shape, with resistance near 164.879 and support at 156.576. The price has tested both levels on multiple occasions but has so far failed to break out of this long-standing range. For now, this remains the most important technical formation to watch in upcoming trading sessions.
MACD:
The MACD histogram has approached the zero line and could be setting up for a bullish crossover, which may signal that the moving average momentum is starting to shift in favor of buying pressure. As the histogram moves further away from the neutral level, bullish momentum may gain even more significance on the chart.
TRIX:
The TRIX indicator line continues to oscillate above the zero line, indicating a prevailing bullish impulse. If the line continues to rise, this could lead to a stronger bullish momentum developing in the short term.
Key Levels:
By Julian Pineda, CFA – Market Analyst
Broad Sideways Range:
Since early August, a key sideways channel has taken shape, with resistance near 164.879 and support at 156.576. The price has tested both levels on multiple occasions but has so far failed to break out of this long-standing range. For now, this remains the most important technical formation to watch in upcoming trading sessions.
MACD:
The MACD histogram has approached the zero line and could be setting up for a bullish crossover, which may signal that the moving average momentum is starting to shift in favor of buying pressure. As the histogram moves further away from the neutral level, bullish momentum may gain even more significance on the chart.
TRIX:
The TRIX indicator line continues to oscillate above the zero line, indicating a prevailing bullish impulse. If the line continues to rise, this could lead to a stronger bullish momentum developing in the short term.
Key Levels:
- 164.879 – Upper Range Resistance: This level marks the top of the broad sideways channel and remains the most important resistance in the short term. Price action near this area may continue to reinforce bullish sentiment and could pave the way for a short-term uptrend.
- 160.655 – Near Support: A mid-range barrier that aligns with the 100-period simple moving average. Continued price action near this level may reinforce the current neutral range, keeping the existing structure intact.
- 156.576 – Major Support: This level corresponds to the lowest prices in recent months. A clear breakdown below this level could trigger a relevant bearish breakout, opening the door to a new downward trend.
By Julian Pineda, CFA – Market Analyst
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.