EURJPY → False resistance breakdown and a weak euro

8 Oca 2024

EURJPY is forging a false resistance breakout amid a global bearish trend. Bearish volume is forming in the 158.38 zone



Based on the fundamental background and strengthening of the Index dollar ( DXY ), the euro ( EURUSD ) may lose ground. In such a case, on the background of euro weakening, Japanese yen ( USDJPY ) may strengthen.
Globally, the currency pair stands in the range of 158.5 (157.9) - 154.0. In such a case, from resistance, within the range, the price may head towards flat support.
Technically, we have a local ascending channel and a false breakdown of the resistance area. The price consolidation below 158.38 and the break of the support at 157.5 will form the market decline to 155.0

Resistance levels: 158.38, 159.0
Support levels: 157.5, 156.3, 155

I expect the price decline within the channel to the support of 155.0. Fundamentally, the euro, as well as the yen are unstable, so the market can behave unpredictably and stand still for a long time

Regards R. Linda!

8 Oca 2024

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