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EURJPY → Consolidation. What's next? Growth or decline?

FOREX forecast
💡Ideas For EURJPY 🇪🇺🇯🇵

📈 EURJPY → Consolidation. What's next? Growth or decline?


EURJPY tests resistance and forms a false breakout, but now the price is stuck inside the range and forms consolidation on which the further scenario depends.
On D1 the price stops at one of the intermediate resistance levels - 161.4. Euro as well as Japanese Yen are getting weaker against the general background, the strong fall of Japanese Yen will squeeze the currency pair and apparently the growth of the pair after the correction may continue.

On H4 the price tests resistance and forms a false breakdown, after which it forms a range between resistance 161.4 and the downtrend line (blue dotted line). It can be assumed that consolidation will continue until the price goes beyond it. Thus:

  • 1) against the backdrop of the rising trend, we have a chance to see a retest of resistance from the previously broken trendline, which could lead to a breakout of 161.4 and further strengthening of the pair.
  • 2) As the price has returned to the channel boundaries, the correction may extend all the way to the uptrend support, but after the breakout of the zone: 160.0

Support levels: 160.0

Resistance levels: 161.4

The further scenario at the moment depends more on who wins the market as part of the fight within the consolidation. The bulls should consolidate above 161.4 to continue rising and the bears below 160.0 to continue the correction.