EUR/JPY Potential Bullish Continuation EUR/JPY Potential Bullish Continuation 📈🔍
📊 Technical Overview:
The EUR/JPY chart presents a bullish channel structure, indicating an overall upward trend. Price action respected the channel boundaries with multiple confirmations before the latest bearish correction.
🔹 Structure Highlights:
🔵 Ascending Channel: Price moved steadily within an upward-sloping channel.
🟠 Support Rebound: A strong bullish candle formed on June 20th after touching the lower boundary — a clear support confirmation.
🔴 Recent Rejection: On July 1st, price tested the upper channel resistance and faced rejection, forming a bearish engulfing candle.
🟫 Support Zone Marked: Around the 167.800 level, this zone has been tested multiple times, indicating a possible demand area.
🔁 Current Scenario:
The pair has broken down from the internal trendline (light brown line) and is heading toward the support zone. A bullish bounce from this area may lead to a rally toward the Target Point at ~172.000 🎯.
📌 Key Levels:
Support Zone: 167.600 – 168.000
Resistance Zone: 170.500 – 172.000
Current Price: 168.994
📈 Outlook:
If support holds and bullish momentum returns, there's potential for a move toward the target area at the top of the channel. However, a break below the support zone could invalidate the bullish scenario and suggest a deeper correction.
🧠 Conclusion:
Wait for bullish confirmation near support before considering long positions. A clean break and retest of the support zone could signal a continuation of the upward trend.
