Technical Outlook:
Looking at previous price movement, we see it's been trending up since August 2024, with the last reaccumulation phase ending in early 2024. We recently saw a demand chain, but the last push couldn't quite hit new highs. Supply then took over, driving the price back down to a daily demand level. At this point, we've seen some strong bullish reactions on the lower timeframes, which is interesting and here's why -
Potential Scenarios & Probabilities:
Scenario 1 (High Probability) – Demand should regain control, leading to a bullish breakout.
Scenario 2 (Medium Probability) - Price could range within the ascending channel for a while.
Scenario 3 (Low Probability) – The bulls might disengage, resulting in a bearish break and continuation thereafter.
Trading Considerations:
Price is currently in a discounted zone within the ascending channel (158.000 – 168.000). We can look for trading opportunities within this range, focusing on strong supply and demand areas, anticipating the eventual bullish breakout. A long position closer to the bottom of the range could turn into a swing trade. If you're trading inside the range on lower time frames, it's smart to keep an eye on volume, overbought/oversold levels, and relative currency strength.
Final Notes:
With the price moving sideways for a good six months, range trading is definitely a possibility. But the real goal is to catch that bullish breakout when it happens, and it looks like it's getting close. As always, manage your risk carefully, and don't hesitate to take the trade when the setup is right – assuming you've got a solid plan and a clear target in mind.
EURJPY
Looking at previous price movement, we see it's been trending up since August 2024, with the last reaccumulation phase ending in early 2024. We recently saw a demand chain, but the last push couldn't quite hit new highs. Supply then took over, driving the price back down to a daily demand level. At this point, we've seen some strong bullish reactions on the lower timeframes, which is interesting and here's why -
Potential Scenarios & Probabilities:
Scenario 1 (High Probability) – Demand should regain control, leading to a bullish breakout.
Scenario 2 (Medium Probability) - Price could range within the ascending channel for a while.
Scenario 3 (Low Probability) – The bulls might disengage, resulting in a bearish break and continuation thereafter.
Trading Considerations:
Price is currently in a discounted zone within the ascending channel (158.000 – 168.000). We can look for trading opportunities within this range, focusing on strong supply and demand areas, anticipating the eventual bullish breakout. A long position closer to the bottom of the range could turn into a swing trade. If you're trading inside the range on lower time frames, it's smart to keep an eye on volume, overbought/oversold levels, and relative currency strength.
Final Notes:
With the price moving sideways for a good six months, range trading is definitely a possibility. But the real goal is to catch that bullish breakout when it happens, and it looks like it's getting close. As always, manage your risk carefully, and don't hesitate to take the trade when the setup is right – assuming you've got a solid plan and a clear target in mind.
EURJPY 
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.