EURJPY - FALSE BREAKOUT HIGHLIGHTS RANGE-BOUND CONDITIONSSymbol - EURJPY
The EURJPY currency pair is currently testing the upper boundary of its established trading range, indicative of a potential distribution phase. However, this attempt has culminated in a false breakout, with the price subsequently consolidating within the horizontal channel.
Amid a weakening US dollar, the Japanese yen is exhibiting relative strength, exerting downward pressure on the EURJPY pair. Following a retest of the lower boundary of the range, the pair staged a false breakout above resistance, only to retreat back within the channel. This price action suggests a continuation of the distribution pattern, with resistance proving resilient.
Currently, a base appears to be forming near the 163.20 level, which serves as a key support and potential trigger level. A sustained breakdown below this threshold, coupled with consolidation beneath it, may reinforce bearish momentum and pave the way for further downside movement.
Key Resistance Levels: 163.40, 163.60
Key Support Levels: 163.20 (Sell trigger), 162.70
A decisive breach and stabilization below the 163.20 support level could act as a catalyst for an accelerated decline in the pair.
