EUR/JPY Sideways Trend Nears a Turning Point
22 October 2024
In today's technical analysis, let's focus on two struggling currencies, the Euro and Japanese Yen. The Japanese Yen, after showing strength earlier in the year, has been steadily weakening since mid-September. This decline in the Yen's value is clearly reflected across several Yen pairs. On the other hand, the Euro isn't faring much better in the mid-term, which is evident in pairs like EUR/USD and EUR/GBP, both of which are trending downward.
When it comes to EUR/JPY, this pair has been trading sideways since the beginning of October, indicating a lack of decisive momentum. However, the pair is approaching a critical juncture. There's a key horizontal resistance marked with an orange line at the 163.7 level, along with an uptrend line marked in blue. This blue support line was tested recently, leading to a bounce, but the situation remains uncertain.
From a technical standpoint, we're nearing a moment where a breakout could happen. If the price manages to close above the orange resistance, that would signal a buying opportunity. On the other hand, if the price closes below the blue uptrend line, it would suggest a selling opportunity. It’s crucial to watch this area closely as we await confirmation on the next direction EUR/JPY will take.