FX.co ★ Mollice | EUR/JPY

EUR/JPY D1 Timeframe. The EUR/JPY pair is striving to surpass the resistance level at 169.45 in order to maintain its upward trajectory above 166.00. This signifies a bullish trend direction, indicating potential price increases. However, caution is advised, as last week saw a notable correction period marked by impulsive movements. During this period, the price breached the support level at 163.68, resulting in a dip to 162.97. Nevertheless, the overarching trend remains positive, characterized by a higher high-higher low structure in major price patterns. The bullish sentiment in EUR/JPY appears somewhat unbalanced, attributed to traders' focus on the rise in Europe's services sector while overlooking the weakening industrial sector. There's a strong likelihood that further bullishness may ensue in the study of the EUR/JPY pair. Notably, recent price action has formed yet another higher high, with the latest peak at 165.55, indicating a continuation of the upward trend.

EUR/JPY H4 Timeframe. With this in mind, immediate execution of position-opening plans seems viable. The Bollinger Band indicator suggests a robust bullish momentum, with prices still close to the band's midpoint, further supporting the case for initiating a purchase position. However, it's crucial to size the position appropriately, avoiding excessive exposure, as there remains a possibility of bearish price movements. Today, a bullish candlestick with a long upward shadow emerged, signaling potential entry of sellers into the market, potentially exerting downward pressure on prices. Yesterday, the EUR/JPY currency pair maintained its upward momentum, propelled by buyers even amidst a minor pullback. The emergence of a small bullish candle indicates the persistence of strength in the bullish trend. However, it's prudent to exercise caution, as there are signs that the upward movement might be slowing down. It's crucial to monitor the resistance level at 165.174 closely and remain ready to adapt your trading strategy in response to evolving market dynamics.