EURJPY lacks upward momentum, indicating further downside
EURJPY began the new trading week on a mixed note, with the euro bulls recovering some of the losses incurred last week. The currency pair has rebounded slightly from a key support level of 182, but remains within a steep descending trend. As of this writing, EURJPY trades above 182.60. Despite the rebound, the forex pair is struggling to regain strong momentum, indicating sellers are very active in the market on the first trading day of the week.* The momentum on EURJPY favours sellers remaining in control if the resistance at 184 persists.
EURUSD bears are firmly in control
Last week, the EUR/USD fell to a fresh yearly low of 1.1430, driven by intense selling pressure from a strong US dollar.* Following these sharp declines, the pair is currently experiencing a corrective bounce. Investors will closely monitor the upcoming ECB and BOJ policy meetings for potential interest rate changes. Notably, the ECB and BOJ interest rate decisions are expected to be key drivers for EUR/JPY this week. Additionally, ongoing geopolitical conflicts and Eurozone inflation data scheduled for Wednesday are anticipated to have a significant impact on the currency pair.
EURJPY technical forecast
From a short-term technical perspective, as long as EURJPY remains below the descending trendline, the pair could resume its downward move. On the downside, significant support is found near 182/181.80. A break below 181.80 could trigger a retest of February lows around 180.80. Should sellers push this level below, further declines toward demand zones at 180 and then 179.50 are possible.
On the upside, immediate resistance is now at 183, followed by 183.30 and 183.60. For a strong bullish reversal, bulls need to secure a confirmed breakout above the critical trendline resistance near 184/184.20. A sustained move above 184.20 would invalidate the current bearish outlook and open the door to sharp gains toward 184.80 and 185.50.
* Past performance is no guarantee of future results.
