EUR/JPY (4H) Technical Analysis – March 6, 2025
Market Structure & Price Action:
The pair was previously in a downtrend, forming a descending channel.
A breakout above the descending trendline occurred, signaling a potential trend reversal or at least a strong retracement.
Price surged past resistance at 156.38, confirming the breakout with bullish momentum.
The next key resistance level was 159.87, which has now been tested.
Volume Analysis:
A noticeable increase in volume at the breakout point indicates strong buying pressure.
If volume starts declining at the current level, a pullback could occur before further continuation.
RSI Indicator:
RSI is at 63.92, approaching the overbought zone (70).
Momentum remains bullish, but there could be a short-term correction before the next move higher.
Key Levels to Watch:
Support: 159.87 (recent breakout level), followed by 156.38.
Resistance: 160.60 (current high) and possibly 162.00 if bullish momentum continues.
Potential Trading Scenarios:
Bullish Case: If price holds above 159.87, the uptrend could continue towards 161.00-162.00.