FX.co ★ Cillian-Murphy | EUR/JPY

The EUR/JPY currency pair is currently experiencing a downtrend on the hourly chart. This is evident as the price remains below the 133-period moving average, reinforcing the bearish sentiment. The trend's strength is further confirmed on smaller timeframes, where the price has also closed below the 133-period moving average. This alignment across multiple timeframes signals a strong potential for continued downward movement, making selling opportunities more favorable at this time. Given the current market conditions, a retracement to the 160.70 level is anticipated. This pullback would provide a more advantageous entry point for those looking to enter short positions. The expectation is that after this retracement, the downward trend will likely resume, allowing traders to capitalize on the selling momentum. It's important to consider that while the current trend favors selling, an alternative scenario exists for potential buying opportunities. This scenario would only become relevant if the price manages to break and sustain above the 162.80 level. Such a move could signal a shift in market sentiment, potentially leading to a reversal or at least a temporary uptrend. However, until this level is breached and confirmed, the primary focus should remain on selling within the existing downtrend.

In summary, the EUR/JPY pair is showing strong bearish signals on the hourly chart, supported by the price's position below the 133-period moving average. Traders should look for selling opportunities, particularly after a retracement to the 160.70 level. While an alternative buying scenario could emerge if the price climbs above 162.80, the current market structure suggests that selling remains the priority for now.