EUR/JPY (4H) Technical Analysis – March 6, 2025
Market Structure & Price Action:
The pair was previously in a downtrend, forming a descending channel.
A breakout above the descending trendline occurred, signaling a potential trend reversal or at least a strong retracement.
Price surged past resistance at 156.38, confirming the breakout with bullish momentum.
The next key resistance level was 159.87, which has now been tested.
Volume Analysis:
A noticeable increase in volume at the breakout point indicates strong buying pressure.
If volume starts declining at the current level, a pullback could occur before further continuation.
RSI Indicator:
RSI is at 63.92, approaching the overbought zone (70).
Momentum remains bullish, but there could be a short-term correction before the next move higher.
Key Levels to Watch:
Support: 159.87 (recent breakout level), followed by 156.38.
Resistance: 160.60 (current high) and possibly 162.00 if bullish momentum continues.
Potential Trading Scenarios:
Bullish Case: If price holds above 159.87, the uptrend could continue towards 161.00-162.00.
Market Structure & Price Action:
The pair was previously in a downtrend, forming a descending channel.
A breakout above the descending trendline occurred, signaling a potential trend reversal or at least a strong retracement.
Price surged past resistance at 156.38, confirming the breakout with bullish momentum.
The next key resistance level was 159.87, which has now been tested.
Volume Analysis:
A noticeable increase in volume at the breakout point indicates strong buying pressure.
If volume starts declining at the current level, a pullback could occur before further continuation.
RSI Indicator:
RSI is at 63.92, approaching the overbought zone (70).
Momentum remains bullish, but there could be a short-term correction before the next move higher.
Key Levels to Watch:
Support: 159.87 (recent breakout level), followed by 156.38.
Resistance: 160.60 (current high) and possibly 162.00 if bullish momentum continues.
Potential Trading Scenarios:
Bullish Case: If price holds above 159.87, the uptrend could continue towards 161.00-162.00.
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.