A Double Bottom Formation Is Possible

Cryptocurrency

Summary:

Given the recent deterioration in the global macroeconomic environment, compounded by the impact of Trump's tariff policies, risk assets are experiencing overall pressure.

SELL BTC-USDT

Close Time

CLOSED

84382.0

Entry Price

75000.0

88900.0

94024.1 -341.9 -0.36%

4518.0

Pips

Loss

75000.0

88914.6

Exit Price

84382.0

Entry Price

88900.0

Fundamentals

The global macroeconomic environment has recently deteriorated, with the U.S. Q1 GDP forecast revised downward to -2.8%. Despite an unexpected 0.1% MoM decrease in March CPI, core CPI remains high at 2.8%. Federal Reserve officials continue to signal a hawkish stance, emphasizing the need to assess the impact of sticky inflation on the path to interest rate cuts. Furthermore, the potential for a Trump administration to maintain a 145% tariff on Chinese goods is increasing market expectations of tighter dollar liquidity, which is putting pressure on risk assets overall.

Meanwhile, the cryptocurrency market is facing increased global regulatory scrutiny. The U.S. SEC is intensifying its examination of exchanges, and the Central Bank of the Russian Federation is restricting domestic cryptocurrency settlements. Bitcoin spot ETF inflows are showing divergence, with persistent outflows from GBTC slowing net inflows. Moreover, the sustained rise in gold prices (the gold/Bitcoin volatility ratio reaching a three-year high) indicates a flight of safe-haven capital from the cryptocurrency market.

Technical Analysis

In the 1D timeframe, Bitcoin's short-term trend exhibits a clear bearish trajectory, characterized by a sequence of lower highs and lower lows. Following a peak at 86,100 on April 13, the price retreated to 83,850, facing resistance from the prior downtrend line. Furthermore, Bitcoin is currently trading below its 60-day SMA, with the downtrend line and the 60-day SMA converging to exert significant resistance. The long upper shadow on April 13 signaled weakening momentum, and today's continued bearish performance underscores prevailing negative market sentiment, confirming short-term selling pressure.

Currently, for Bitcoin to resume its uptrend, Bitcoin must first retest the 74,000 support level, potentially establishing a double-bottom pattern. Consequently, a secondary bottoming phase is anticipated in the short term.

It is recommended to go short at the highs.

Trading Recommendations

Trading Direction: Sell

Entry Price: 84700

Target Price: 75000

Stop Loss: 88900

Valid Until: April 28, 2025 23:00:00

Support: 77261, 74501

Resistance: 86100, 88769

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

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Manuel

Central Bank

Economic

Summary:

If the pair fails to break above the current resistance, sellers may begin to re-enter, paving the way for a deeper retracement.

SELL NZDUSD

Close Time

CLOSED

0.58128

Entry Price

0.56700

0.58800

0.59574 -0.00389 -0.65%

67.2

Pips

Loss

0.56700

0.58800

Exit Price

0.58128

Entry Price

0.58800

The Reserve Bank of New Zealand (RBNZ) cut its official cash rate by 25 basis points during its April policy meeting on Wednesday, responding to ongoing disinflationary trends and signs of a broader economic slowdown. While the decision was widely expected, some analysts had projected a more aggressive cut of 50 basis points, reflecting growing concerns about the domestic outlook. Markets are now pricing in the potential for up to 100 basis points of further easing through 2025, a development that could weigh on the New Zealand Dollar (NZD) over the short to medium term.

At the same time, U.S. President Donald Trump announced a 90-day suspension of reciprocal tariffs on countries that have chosen not to retaliate, even as fresh levies were imposed on Chinese goods in response to Beijing’s countermeasures. While acknowledging that trade tensions have caused volatility in financial markets, Trump maintained that constructive trade agreements with China and other nations remain achievable.

On the economic front, the latest U.S. Producer Price Index (PPI) figures revealed a sharper-than-expected decline in wholesale prices. PPI fell by 0.4% in March from the previous month, following a slight upward revision to February’s figure, which now stands at a 0.1% increase. Economists surveyed by Bloomberg had forecast a 0.2% rise for March, making the actual data a notable downside surprise.

Core PPI, which strips out the more volatile food and energy components, dropped 0.1%, defying expectations of a 0.3% uptick. Several components that feed into the Federal Reserve’s preferred inflation gauges also came in weaker, casting further doubt on the sustainability of price pressures and complicating the Fed’s policy path.

St. Louis Fed President Alberto Musalem warned of the possibility that inflation may pick up even as labor market conditions weaken—a scenario that would require cautious monitoring. He also emphasized that long-term inflation expectations must remain well anchored, particularly in light of the uncertain impact of tariffs and other economic policies.

“There is a great deal of uncertainty around the net effects and timing of how evolving trade, immigration, fiscal, and regulatory policies will influence prices, employment, and overall activity,” Musalem said during remarks in Hot Springs, Arkansas. “We cannot rule out a situation where inflation accelerates while the labor market deteriorates.”

Boston Fed President Susan Collins echoed similar concerns, stating that policy unpredictability—especially surrounding tariffs—is reducing the central bank’s flexibility to respond effectively. Minneapolis Fed President Neel Kashkari further underlined the risks, warning that prolonged tariffs could both unanchor inflation expectations and act as a drag on economic growth. In a recent essay published by the Fed, Kashkari noted that the evolving policy landscape has made the monetary outlook far more complex and uncertain.

Meanwhile, New York Fed President John Williams stated that he expects broad-based economic data from the U.S. to weaken further as the full impact of tariffs becomes more entrenched. Correction Looms as NZD/USD Struggles to Post New High_1

Correction Looms as NZD/USD Struggles to Post New High_1

Technical Analysis

NZD/USD has recently approached a notable resistance zone near 0.5839, which lies just below the local high of 0.5854 reached on April 3. Price action has so far failed to break above this level, suggesting a potential exhaustion of bullish momentum. This inability to post a new high could signal the beginning of a corrective phase, with the next key support located around 0.5661.

This support area also aligns with the 100- and 200-period moving averages on the 4-hour chart, currently positioned at nearby levels, reinforcing its importance. Should the current resistance continue to hold, price may gravitate toward that area during a pullback.

The RSI recently touched 78, entering deep overbought territory—a level that has previously triggered downside movements. If the pair fails to break above the current resistance, sellers may begin to re-enter, paving the way for a deeper retracement. However, if NZD/USD manage to post a higher high above 0.5854, the bullish trend may regain traction and continue toward higher targets.

Trading Recommendations

Trading direction: Sell

Entry price: 0.5812

Target price: 0.5670

Stop loss: 0.5880

Validity: Apr 23, 2025 15:00:00

Risk Warnings and Disclaimers

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Manuel

Economic

Central Bank

Summary:

The RSI climbed to 74 during this rally, entering overbought territory—potentially drawing sellers looking for a short-term pullback opportunity.

SELL GBPUSD

Close Time

CLOSED

1.31000

Entry Price

1.28800

1.31900

1.33073 -0.00250 -0.19%

90.0

Pips

Loss

1.28800

1.31902

Exit Price

1.31000

Entry Price

1.31900

The U.S. Producer Price Index (PPI) unexpectedly declined by 0.4% in March from the previous month, following a modest upward revision to a 0.1% increase in February, according to a report released Friday by the Bureau of Labor Statistics. The median forecast in a Bloomberg survey of economists had called for a 0.2% gain, making the actual print notably weaker than anticipated.

Excluding food and energy—the more volatile components—the core PPI fell 0.1%, contrasting sharply with expectations for a 0.3% increase. Key components feeding into the Fed’s preferred inflation gauge also showed signs of softness, raising questions about the durability of inflationary pressures moving forward.

St. Louis Fed President Alberto Musalem flagged near-term risks of inflation reaccelerating even as labor market conditions weaken. He emphasized the need for policymakers to stay vigilant and data-dependent, given the complexity of the current environment.

Musalem reiterated his view that some inflationary effects stemming from tariffs could prove sticky over time. He also stressed the importance of keeping long-term inflation expectations anchored, warning of the potential for policy missteps amid high uncertainty.

“There remains significant uncertainty about the net impact and timing of how new trade, immigration, fiscal, and regulatory policies will affect prices, employment, and overall economic activity,” Musalem said during a speech in Hot Springs, Arkansas. “It is entirely plausible that we could face a scenario where inflation rises while the labor market softens.”

Echoing this sense of caution, Boston Fed President Susan Collins also pointed to persistent policy uncertainty linked to tariff decisions as a constraint on the Fed’s ability to respond nimbly to economic shifts.

Similarly, Minneapolis Fed President Neel Kashkari emphasized the dual threat posed by ongoing tariffs, warning that they could simultaneously undermine long-term inflation expectations and hamper growth. In a recent Fed publication, Kashkari noted that the path ahead for monetary policy has grown more complicated and less predictable.

New York Fed President John Williams added to the chorus of concerns, stating on Friday that he expects a broad-based weakening in U.S. economic data as the full effects of tariffs become more deeply entrenched in the economy.

Meanwhile, across the Atlantic, UK economic data came in stronger than expected. The British economy grew by 0.5% in February, rebounding sharply from flat growth in January, according to the latest figures from the Office for National Statistics (ONS). Markets had been anticipating a modest 0.1% expansion.

The February Services Index rose by 0.6% over a three-month rolling basis, compared to a previous reading of 0.4%.

Additional UK figures showed monthly industrial and manufacturing production increased by 1.5% and 2.2%, respectively—both beating market forecasts and adding positive momentum to the economic outlook. Overbought Signals Suggest GBP/USD Could Be Ripe for a Pullback_1

Overbought Signals Suggest GBP/USD Could Be Ripe for a Pullback_1

Technical Analysis

GBP/USD experienced a strong bullish surge from the ascending trendline tested on April 7, rising from 1.2709 to an intraday high of 1.3149. However, the pair has since failed to set a new high, suggesting a potential corrective phase. The RSI reached 74 during the rally, entering overbought territory, which may attract sellers eyeing a short-term pullback.

A key level to watch is 1.2878, aligning closely with the 100- and 200-period moving averages on the 4-hour chart at 1.2929 and 1.2886, respectively. These zones could serve as critical technical areas if the pair continues to retreat from its recent highs. Conversely, a strong breakout above the recent high could signal the continuation of the bullish trend.

Trading Recommendations

Trading direction: Sell

Entry price: 1.3100

Target price: 1.2880

Stop loss: 1.3190

Validity: Apr 23, 2025 15:00:00

Risk Warnings and Disclaimers

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Eva Chen

Economic

Forex

Summary:

During the European session on Friday, the US dollar plummeted as news emerged that China had escalated the trade war with the United States. Meanwhile, the trade tensions between the US and Canada have not been resolved. The plummet of the US dollar has propelled the Canadian dollar to its highest level since November 11, 2024. Trump's tariff policies are likely to accelerate the global de-dollarization

SELL USDCAD

EXP

EXPIRED

1.39800

Entry Price

1.34200

1.41900

1.38493 -0.00044 -0.03%

Pips

EXPIRED

1.34200

1.38493

Exit Price

1.39800

Entry Price

1.41900

Fundamentals

According to a report by Reuters, China's Ministry of Finance announced on Friday that it will increase the additional tariffs on US-imported goods from 84% to 125%, effective from April 12. The endless trade war between Beijing and Washington has caused turmoil in the foreign exchange market.

In addition, most Mexican and Canadian goods covered by the US-Mexico-Canada Agreement (USMCA) have been exempted from the broad US tariff policies. This has led to the continuous selling of the US dollar, pushing the USDCAD pair to its lowest level since November 11, 2024, at 1.3872.

A White House official stated that the 90-day tariff suspension announced by President Trump on Wednesday does not apply to the tariffs imposed on goods imported from Mexico and Canada. The official added that the 25% tariffs on goods imported from Mexico and Canada that are not covered by the USMCA remain in effect. Energy and potash from these two countries will also continue to be subject to a 10% tariff.

Canadian Prime Minister Mark Carney, speaking at a campaign event in Ontario, said that Canada is countering the US's unreasonable tariffs by implementing retaliatory tariffs, including those on steel and automobiles. Carney noted that these measures are "designed to inflict maximum suffering on the United States."

Background information shows that the US officially implemented a 25% tariff on all imported steel and aluminum on March 12. Canada subsequently announced retaliatory tariffs on US goods. On March 26, President Trump signed a notice announcing a 25% tariff on imported automobiles, which took effect on April 3.

Carney said that the Canadian government will take the same measures as the US, imposing a 25% tariff on all US-imported automobiles that do not comply with the US-Mexico-Canada Agreement (USMCA).

Market Observations: Trump's capricious trade policies, although providing a short-term boost to market risk appetite, may in the medium to long term intensify the global asset allocation trend of "de-dollarization." We maintain our view that the valuation of US dollar assets will be relatively compressed and the US "exceptionalism" premium will gradually dissipate.

Trump's inconsistent tariff policies and the randomness of previous tariff policies towards Colombia, Canada, and Mexico may significantly undermine the credibility of US policies. Meanwhile, the inevitable result of the US's efforts to reduce its current account surplus and increase global trade barriers is a decline in the demand for the US dollar and a decrease in capital inflows into the US dollar.

Technical Analysis

The USDCAD pair has extended its decline from 1.4791, breaking below 1.4026 and resuming its downward trend. A sustained break below 1.3946 could lead to a more pronounced bearish trend. The next target is the 100% Fibonacci retracement level of the 1.4791 to 1.4150 range, at 1.3773, with the downside support at 1.3420.

On the upside, the price needs to break above the 1.4150 support level, turning it into a resistance, to signal a short-term bottom. Otherwise, even if there is a rebound, the outlook will remain bearish.

Trading Recommendations

Trading Direction: Sell

Entry Price: 1.3980

Target Price: 1.3420

Stop Loss: 1.4190

Valid Until: April 26, 2025, 23:55:00

Support: 1.3822/1.3746/1.3542

Resistance: 1.3991/1.4106/1.4179

Risk Warnings and Disclaimers

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Warren Takunda

Economic

Summary:

The USD/JPY pair slumped to its weakest level since September as a confluence of escalating geopolitical tensions and deepening economic worries in the United States fueled safe-haven demand for the Japanese Yen.

SELL USDJPY

Close Time

CLOSED

143.500

Entry Price

139.000

146.000

143.622 +1.015 +0.71%

60.4

Pips

Profit

139.000

142.896

Exit Price

143.500

Entry Price

146.000

The USD/JPY pair extended its downward trajectory for the fourth consecutive session on Friday, briefly plunging to its lowest level in seven months—just above the psychologically significant 142.00 mark—before staging a modest rebound in late European trading. However, the recovery remains fragile, with the broader trend increasingly skewed to the downside as global risk sentiment deteriorates rapidly.

At the heart of the USD/JPY slide is a toxic cocktail of macroeconomic and geopolitical uncertainty, stoking safe-haven flows into the Japanese Yen. Investors are growing increasingly alarmed by the deepening US-China trade rift, which escalated sharply on Friday after Beijing retaliated with a fresh round of punitive tariffs, raising levies on a wide swathe of US goods from 84% to a staggering 125%. The move came in direct response to the Trump administration's decision earlier this week to raise duties on Chinese imports to 145%, reigniting fears of a full-blown trade war.

The market reaction was swift and unforgiving. The Japanese Yen, long regarded as the quintessential safe-haven currency in times of crisis, surged against most of its peers, while the US Dollar came under intense pressure. The sharp risk-off tone in global markets not only dragged USD/JPY lower but also battered equities and high-yielding assets, as investors braced for a prolonged period of economic turbulence.

The safe-haven rush into the Yen underscores the degree of investor anxiety, particularly as the economic implications of an entrenched trade war come into focus. The broader narrative fueling the sell-off in the Dollar is no longer just about tariffs—it’s about growth, or more precisely, the lack thereof.

Concerns over a potential slowdown in US economic activity are prompting speculation that the Federal Reserve may be forced to pivot more aggressively toward easing. With market participants now pricing in a high probability of rate cuts in the second half of the year, the US Dollar has seen its yield advantage eroded, leaving it vulnerable to further downside.

This dynamic stands in stark contrast to the Bank of Japan’s ultra-loose monetary stance, but the haven demand for the Yen is proving to be a far more powerful driver in the current environment. The divergence in monetary policy expectations, while traditionally supportive of USD/JPY, has been dwarfed by the overwhelming appetite for safety as uncertainty clouds the outlook for global trade and growth.

Technical Analysis

From a technical perspective, USD/JPY is now firmly entrenched in a bearish trend, having decisively broken through key support at 144.55 in recent sessions. The pair is trading along a descending trendline on the four-hour chart, with momentum indicators such as the Relative Strength Index (RSI) signaling further downside potential despite flirting with oversold territory.

The pair could stage a modest pullback toward the 144.00 region—now acting as a resistance level following the breakdown. However, any such rebound is likely to be short-lived, with the broader trend remaining bearish. Technical targets suggest a potential decline toward 139.00, aligning with the 161.8% Fibonacci extension level. Traders are eyeing a stop-loss level around 146.00, which marks another key pullback resistance.

TRADE RECOMMENDATION

SELL USDJPY

ENTRY PRICE: 143.50

STOP LOSS: 146.00

TAKE PROFIT: 139.00

Risk Warnings and Disclaimers

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Warren Takunda

Economic

Summary:

GBP/USD surged toward the 1.3100 handle on Friday, building on weekly gains as the US Dollar came under intensified selling pressure.

BUY GBPUSD

Close Time

CLOSED

1.31007

Entry Price

1.34500

1.29400

1.33073 -0.00250 -0.19%

83.1

Pips

Profit

1.29400

1.31838

Exit Price

1.31007

Entry Price

1.34500

The British Pound surged against the US Dollar on Friday, with GBP/USD extending its bullish run for the fourth consecutive day. The pair climbed nearly 1% on the day, touching levels just shy of 1.3100, buoyed by sustained selling in the greenback as investor sentiment deteriorated in the face of escalating geopolitical and economic tensions between the United States and China.

The move comes on the back of growing concerns about the trajectory of US economic growth and inflation, as well as political risks emerging from a renewed trade standoff between the world’s two largest economies.

The pound has been riding a wave of strength this week, bolstered by a broad decline in the US Dollar, which continues to reel under the pressure of rising geopolitical risks and disappointing macroeconomic sentiment. After closing higher for three consecutive sessions, GBP/USD is on course to close the week with significant gains, up more than 2% from Monday’s open.

At the heart of Friday’s rally is the market’s reaction to fresh trade war tensions. China's Finance Ministry announced early Friday that starting April 12, it would impose additional tariffs on US imports, raising levies from 84% to a striking 125% on select goods. The move is a direct response to US President Donald Trump’s earlier decision to hike tariffs on a swathe of Chinese products — reigniting fears of a prolonged and economically damaging trade war.

The greenback has been heavily punished in the currency markets as investors unwind long positions. The US Dollar Index (DXY), which tracks the USD against a basket of six major currencies, plunged below the critical 99.50 level — its weakest since April 2022 — as investors rotated into other major currencies, including sterling and the euro.

The renewed friction with China compounds existing concerns over the US economic outlook, already clouded by sticky inflation and the Federal Reserve’s ambiguous policy stance. With traders beginning to price in a more cautious Fed, the USD has lost its relative appeal as a safe haven.

"The tide is clearly turning against the dollar," said one FX strategist at a London-based investment bank. "Not only are geopolitical risks rising, but the market is increasingly questioning whether the Fed can stay hawkish in the face of sluggish economic indicators."

All eyes now turn to key US data due later in the New York session, with the March Producer Price Index (PPI) expected to shed light on inflation trends at the factory gate. Simultaneously, the University of Michigan will release its preliminary Consumer Sentiment Index for April, a closely watched indicator that may reveal how Americans are reacting to inflation and rising interest rates.

Any signs of cooling inflation or faltering consumer confidence could deepen the rout in the dollar and further fuel the GBP/USD rally.

Technical Analysis

Technically, the GBP/USD pair is displaying strong bullish signals. The pair decisively broke above the resistance zone at 1.3100, overcoming downward pressure from the 50-period exponential moving average (EMA50) during Thursday’s session. This breakout validates the continuation of the broader upward trend that has dominated price action in recent weeks.

Price action is now eyeing the psychological 1.3300 handle as the next major target. However, traders should remain cautious in the near term. The Relative Strength Index (RSI) has entered overbought territory, flashing a potential short-term warning sign. This may lead to a brief consolidation or even a pullback toward the newly established support level around 1.3010, before another leg higher.

The bullish structure remains intact, but a short-term correction cannot be ruled out,As long as 1.3010 holds, the bias stays to the upside. A break above 1.3200 would open the door toward 1.3380 and possibly 1.3450.

TRADE RECOMMENDATION

BUY GBPUSD

ENTRY PRICE: 1.3100

STOP LOSS: 1.2940

TAKE PROFIT: 1.3450

Risk Warnings and Disclaimers

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Warren Takunda

Economic

Summary:

EUR/JPY edged higher during the Asian session on Friday, recovering earlier losses to trade near 163.00.

BUY EURJPY

Close Time

CLOSED

162.349

Entry Price

165.100

160.700

163.172 +0.868 +0.53%

65.1

Pips

Profit

160.700

163.000

Exit Price

162.349

Entry Price

165.100

In a week marked by resurgent global economic anxiety and intensifying trade tensions, the EUR/JPY currency pair staged a modest recovery during Friday's Asian trading session. The pair climbed back toward the 163.00 handle, retracing earlier losses amid complex crosswinds from both sides of the equation—strength in the Japanese Yen and weakness in the Euro.

This rebound, however, is occurring in the shadow of several significant macroeconomic developments, most notably in Japan. The Yen has been gaining ground as traders look ahead to a rare joint meeting involving the Ministry of Finance (MOF), the Financial Services Agency (FSA), and the Bank of Japan (BoJ)—a summit widely interpreted as a response to mounting concerns over market volatility and currency stability. A joint statement is anticipated after the meeting, though many market participants expect it to offer reassurances rather than deliver concrete policy shifts.

The meeting, nevertheless, underscores the growing urgency among Japanese authorities to manage the Yen’s trajectory, particularly as the currency sees increasing demand due to its safe-haven status. Investors are hedging against potential fallout from recent tariff escalations between the United States and its trading partners, especially after retaliatory measures from the U.S. took effect on Wednesday. These dynamics have amplified fears of a global recession, prompting a flight to safety that has benefitted the JPY.

Further supporting the Yen’s recent strength are signs of a potential diplomatic thaw between Tokyo and Washington. U.S. President Donald Trump has reportedly agreed to meet with Japanese officials to initiate fresh trade negotiations, raising hopes of a bilateral agreement that could protect Japan from further protectionist measures. This move has been interpreted as a positive signal by markets, boosting sentiment toward the Yen.

On the monetary policy front, expectations are firming that the BoJ could continue hiking rates into 2025, a rare hawkish tilt from a central bank long associated with ultra-loose policy. Persistent domestic inflation has prompted speculation that Japan may need to tighten further to prevent overheating and maintain price stability. Should the BoJ confirm this trajectory in upcoming communications, it would represent a significant pivot with implications not just for the Yen, but for broader FX and bond markets.

On the other side of the pair, the Euro has had a less fortunate run. The common currency is contending with a toxic mix of political tension, economic uncertainty, and a growing chorus of dovish voices within the European Central Bank. The imposition of U.S. tariffs earlier in the week has added new strain to the Eurozone’s already fragile recovery, prompting urgent discussions among policymakers.

Several prominent ECB officials—including Piero Cipollone of Italy, François Villeroy de Galhau of France, and Yannis Stournaras of Greece—have publicly supported further easing measures, a signal that a rate cut in April is all but assured. Speaking ahead of a key Eurogroup meeting in Warsaw, Stournaras argued that the newly introduced tariffs would not derail the ECB’s dovish path. He estimated the tariffs could shave 0.3% to 0.4% off Eurozone GDP growth in the first year, but maintained that inflation forecasts remain anchored.

Adding to the bleak outlook, Poland’s Finance Minister Andrzej Domański warned of “adverse social consequences” from the tariff shock, including potential supply chain disruptions and rising corporate costs. These factors, he said, could not only slow growth but also fuel currency weakness across the region.

The Euro’s vulnerability is further compounded by a shift in market expectations. Traders are increasingly betting on a more aggressive ECB rate-cutting cycle, which could widen the policy divergence between the ECB and the BoJ. This divergence makes the EUR/JPY cross particularly sensitive to any additional signs of Euro-area weakness or Japanese policy normalization.

Technical Analysis

From a technical standpoint, EUR/JPY appears to have completed a short-lived bearish correction and is now positioning for a fresh leg higher. The currency pair is currently trading at 162.35, rebounding from a recent drop that found support in a well-established demand zone between 160.90 and 161.10. This area has held firm multiple times, suggesting a strong base of buyer interest.

Notably, the pair has formed a clear bullish structure, characterized by higher lows and a breakout from a consolidation range. A recent bullish impulse broke above minor resistance, followed by a measured retracement that has respected the 50% Fibonacci level—providing technical confluence for a potential continuation to the upside.

If this momentum holds, bulls may be eyeing the 165.10 level as the next key resistance—a target likely to attract buy-side liquidity. This price point also aligns with the top of a bullish flag formation, lending credence to the view that EUR/JPY may resume its upward trajectory in the short term.

TRADE RECOMMENDATION

BUY EURJPY

ENTRY PRICE: 162.35

STOP LOSS: 160.70

TAKE PROFIT: 165.10

Risk Warnings and Disclaimers

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