EURJPY has just broken out of a well-defined bullish pennant pattern on the 4H timeframe, confirming strong continuation potential to the upside. The price is currently hovering around 169.60 after consolidating in a tight structure, respecting both dynamic trendline support and horizontal resistance. This breakout signals renewed bullish momentum, and I'm now targeting the 172.10 zone as the next significant resistance level. The structure is clean, volume supported the breakout, and price action is aligned with the dominant uptrend.
Despite a relatively quiet start to the week—largely influenced by global risk-off sentiment surrounding Middle East tensions—EURJPY has held firm. Now that geopolitical jitters are easing slightly, yen weakness is resurfacing. The Bank of Japan remains firmly dovish, maintaining ultra-loose policy, while the Euro is supported by hawkish commentary from the ECB as inflation in the eurozone remains sticky. This divergence continues to fuel the long-term bullish bias for EURJPY.
Fundamentally, Japanese economic indicators remain soft, and there's still no clarity on when the BoJ will meaningfully shift policy. Meanwhile, EUR zone confidence indicators have stabilized, and speculation is growing around the ECB holding rates higher for longer into Q3. With widening yield differentials and a favorable risk sentiment return, this pair is positioned well for upside movement. Current momentum supports the probability of reaching the 172.00–172.10 area as risk appetite rebuilds across markets.
Technically and fundamentally aligned, EURJPY offers one of the strongest bullish continuation opportunities on the board right now. I will continue to monitor for minor dips as potential add-on areas, aiming for a full extension of the measured move from the pennant formation. Patience pays in setups like this where structure, sentiment, and macro all align.
Despite a relatively quiet start to the week—largely influenced by global risk-off sentiment surrounding Middle East tensions—EURJPY has held firm. Now that geopolitical jitters are easing slightly, yen weakness is resurfacing. The Bank of Japan remains firmly dovish, maintaining ultra-loose policy, while the Euro is supported by hawkish commentary from the ECB as inflation in the eurozone remains sticky. This divergence continues to fuel the long-term bullish bias for EURJPY.
Fundamentally, Japanese economic indicators remain soft, and there's still no clarity on when the BoJ will meaningfully shift policy. Meanwhile, EUR zone confidence indicators have stabilized, and speculation is growing around the ECB holding rates higher for longer into Q3. With widening yield differentials and a favorable risk sentiment return, this pair is positioned well for upside movement. Current momentum supports the probability of reaching the 172.00–172.10 area as risk appetite rebuilds across markets.
Technically and fundamentally aligned, EURJPY offers one of the strongest bullish continuation opportunities on the board right now. I will continue to monitor for minor dips as potential add-on areas, aiming for a full extension of the measured move from the pennant formation. Patience pays in setups like this where structure, sentiment, and macro all align.
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Join our Forex Community Telegram group and connect with thousands of traders.
Hit the Link below
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.