EUR/JPY – 4H Chart Analysis (Feb 27, 2025)
1. Market Structure & Trend Analysis
The chart shows that EUR/JPY has broken out of a descending channel, indicating a potential bullish reversal.
A higher low formation could confirm the beginning of an uptrend.
The key resistance level to watch is 159.87, where the price could face selling pressure.
2. RSI & Momentum Analysis
RSI is currently at 51.89, signaling that momentum is shifting towards the bulls.
The previous downtrend showed oversold conditions, and now RSI is starting to rise, confirming a potential bullish move.
3. Key Levels to Watch
Support:
156.38 (Breakout retest zone; price must stay above this to remain bullish)
155.50 - 156.00 (Demand zone; if lost, downtrend may resume)
Resistance:
159.87 (Major resistance; could act as a take-profit zone for longs)
162.00 (Next resistance if the uptrend gains strength)
4. Potential Trade Scenarios
📈 Bullish Scenario (Higher Probability)
If price holds above 156.38 and continues its breakout move, a rally towards 159.87 is likely.
Long Setup:
Entry: Around 156.50 - 157.00
Stop-loss: Below 156.00
Target: 159.87
📉 Bearish Scenario (Low Probability)
If price fails to hold above 156.38, a drop back into the channel could happen.
A rejection at 159.87 could also trigger a retracement.
5. Conclusion & Strategy
Short-term bias: Bullish, targeting 159.87 if support at 156.38 holds.
Trade idea: Look for a pullback entry near support and ride the breakout move.
Risk management: Keep a tight stop below 156.00 to avoid false breakouts.
1. Market Structure & Trend Analysis
The chart shows that EUR/JPY has broken out of a descending channel, indicating a potential bullish reversal.
A higher low formation could confirm the beginning of an uptrend.
The key resistance level to watch is 159.87, where the price could face selling pressure.
2. RSI & Momentum Analysis
RSI is currently at 51.89, signaling that momentum is shifting towards the bulls.
The previous downtrend showed oversold conditions, and now RSI is starting to rise, confirming a potential bullish move.
3. Key Levels to Watch
Support:
156.38 (Breakout retest zone; price must stay above this to remain bullish)
155.50 - 156.00 (Demand zone; if lost, downtrend may resume)
Resistance:
159.87 (Major resistance; could act as a take-profit zone for longs)
162.00 (Next resistance if the uptrend gains strength)
4. Potential Trade Scenarios
📈 Bullish Scenario (Higher Probability)
If price holds above 156.38 and continues its breakout move, a rally towards 159.87 is likely.
Long Setup:
Entry: Around 156.50 - 157.00
Stop-loss: Below 156.00
Target: 159.87
📉 Bearish Scenario (Low Probability)
If price fails to hold above 156.38, a drop back into the channel could happen.
A rejection at 159.87 could also trigger a retracement.
5. Conclusion & Strategy
Short-term bias: Bullish, targeting 159.87 if support at 156.38 holds.
Trade idea: Look for a pullback entry near support and ride the breakout move.
Risk management: Keep a tight stop below 156.00 to avoid false breakouts.
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.