- EURJPY trims January’s gains within bullish channel
- Short-term risk skewed to the downside
EURJPY started a new bearish cycle within a short-term upward-sloping channel, pulling from a one-and-a-half month high of 161.85 to reach a low of 159.20 on Tuesday.
If the bulls manage to run back above the 160.00 mark, they may stage another battle near the 78.6% Fibonacci of 161.80 and the channel’s upper band at 162.30. A successful penetration higher could lose steam near November’s ceiling of 163.70-164.28. Should the rally continue, the pair could advance towards the resistance trendline, which connects the highs from June and November 2023 at 167.50.
Summing up, EURJPY is expected to lose more ground in the coming sessions, with support likely coming next within the 158.34-158.64 region.