EUR/JPY – 4H Chart Analysis (March 6, 2025)
1. Market Structure & Trend Analysis
Falling Wedge Breakout: Price was previously in a descending channel, forming a falling wedge pattern, which is a bullish reversal signal.
Strong Breakout & Momentum: The breakout led to a sharp rally, confirming bullish intent.
Retest of 159.87: Price is currently retesting the 159.87 support zone, which was a previous resistance level.
2. RSI & Momentum Analysis
RSI at 63.92: Indicates strong bullish momentum but not overbought yet.
Healthy Pullback: The RSI shows a minor retracement, suggesting that price may be stabilizing before another push higher.
3. Key Levels to Watch
Support:
159.87 (Current retest level; previous resistance turned support)
156.38 (Major support below if price breaks down)
Resistance:
160.50 - 161.00 (Current local resistance zone)
162.00+ (Next major resistance if the uptrend continues)
4. Potential Trade Scenarios
📈 Bullish Scenario (Higher Probability)
If 159.87 holds as support, price could continue the uptrend towards 161.00+.
Long Setup:
Entry: 159.80 - 160.00 (on confirmation of support hold)
Stop-loss: Below 159.50
Target: 161.00, then 162.00
📉 Bearish Scenario (Lower Probability)
If price fails to hold above 159.87, we could see a deeper retracement toward 156.38.
Short Setup:
Entry: Below 159.50
Stop-loss: Above 160.00
Target: 157.50, then 156.50
5. Conclusion & Strategy
Bias: Bullish, but waiting for confirmation of support at 159.87.
Trade idea: A retest of 159.87 holding as support could provide a strong buy opportunity for continuation to 161.00 - 162.00.
Risk management: If price breaks below 159.50, consider avoiding longs and waiting for a deeper retracement.
1. Market Structure & Trend Analysis
Falling Wedge Breakout: Price was previously in a descending channel, forming a falling wedge pattern, which is a bullish reversal signal.
Strong Breakout & Momentum: The breakout led to a sharp rally, confirming bullish intent.
Retest of 159.87: Price is currently retesting the 159.87 support zone, which was a previous resistance level.
2. RSI & Momentum Analysis
RSI at 63.92: Indicates strong bullish momentum but not overbought yet.
Healthy Pullback: The RSI shows a minor retracement, suggesting that price may be stabilizing before another push higher.
3. Key Levels to Watch
Support:
159.87 (Current retest level; previous resistance turned support)
156.38 (Major support below if price breaks down)
Resistance:
160.50 - 161.00 (Current local resistance zone)
162.00+ (Next major resistance if the uptrend continues)
4. Potential Trade Scenarios
📈 Bullish Scenario (Higher Probability)
If 159.87 holds as support, price could continue the uptrend towards 161.00+.
Long Setup:
Entry: 159.80 - 160.00 (on confirmation of support hold)
Stop-loss: Below 159.50
Target: 161.00, then 162.00
📉 Bearish Scenario (Lower Probability)
If price fails to hold above 159.87, we could see a deeper retracement toward 156.38.
Short Setup:
Entry: Below 159.50
Stop-loss: Above 160.00
Target: 157.50, then 156.50
5. Conclusion & Strategy
Bias: Bullish, but waiting for confirmation of support at 159.87.
Trade idea: A retest of 159.87 holding as support could provide a strong buy opportunity for continuation to 161.00 - 162.00.
Risk management: If price breaks below 159.50, consider avoiding longs and waiting for a deeper retracement.
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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.
Related publications
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.