Since the 2020 local low near 114, EURJPY has been trading in a strong bullish trend. More importantly, from 2022 onward, the pair spent nearly two full years moving inside a clean, textbook ascending channel.
In the summer of 2024, after reaching the upper boundary of that channel, EURJPY corrected aggressively and, in less than a month, dropped into 155.
That level became a major support.
After printing that local low, the pair entered a 1,000-pip range, with a very strong floor around 155 acting as the base of demand.
By late February 2025, EURJPY returned to support again — and from that point, for almost a full year, price resumed the uptrend and eventually printed a new ATH last week at 187.10.
Then Friday hit.
A violent sell-off began, and the pair is now dropping toward the lower boundary of the recent rising channel.
🔎 Why EURJPY Is Now a Short Candidate
As mentioned in my latest JPY Index analysis, I’m expecting the JPY to finally enter a recovery phase — which makes JPY crosses strong candidates for correction.
EURJPY stands out immediately because it’s:
✅ heavily extended
✅ technically stretched
✅ and sitting at potential “end-of-trend” conditions
📌 Key Notes From the Bigger Picture
There are a few important things worth highlighting:
1️⃣ On the higher timeframes, ignoring intraday spikes, EURJPY has respected structure almost perfectly — like something taken from a technical analysis textbook.
2️⃣ I expect this technical behavior to continue going forward.
3️⃣ The first ascending channel had roughly a 1,500-pip width, which is normal for a healthy trend.
4️⃣ The more recent channel is much tighter — almost half the size.
And in my experience, this leads to reversal.
🎯 Outlook & Targets
As long as price remains below the recent ATH, I see the risk shifting toward a broader reversal.
On the bigger picture, the “normal” corrective target becomes:
➡️ 166 zone
At the same time, we must keep in mind the previous key area:
📌 175 zone (old ATH / major reference level)
✅ Conclusion
Even without holding trades all the way to bigger targets, the key here is simple:
👉 a good short entry under ATH can offer excellent risk-to-reward
And even a controlled correction can realistically produce:
✅ 500+ pips
with the right entry and discipline.
In the summer of 2024, after reaching the upper boundary of that channel, EURJPY corrected aggressively and, in less than a month, dropped into 155.
That level became a major support.
After printing that local low, the pair entered a 1,000-pip range, with a very strong floor around 155 acting as the base of demand.
By late February 2025, EURJPY returned to support again — and from that point, for almost a full year, price resumed the uptrend and eventually printed a new ATH last week at 187.10.
Then Friday hit.
A violent sell-off began, and the pair is now dropping toward the lower boundary of the recent rising channel.
🔎 Why EURJPY Is Now a Short Candidate
As mentioned in my latest JPY Index analysis, I’m expecting the JPY to finally enter a recovery phase — which makes JPY crosses strong candidates for correction.
EURJPY stands out immediately because it’s:
✅ heavily extended
✅ technically stretched
✅ and sitting at potential “end-of-trend” conditions
📌 Key Notes From the Bigger Picture
There are a few important things worth highlighting:
1️⃣ On the higher timeframes, ignoring intraday spikes, EURJPY has respected structure almost perfectly — like something taken from a technical analysis textbook.
2️⃣ I expect this technical behavior to continue going forward.
3️⃣ The first ascending channel had roughly a 1,500-pip width, which is normal for a healthy trend.
4️⃣ The more recent channel is much tighter — almost half the size.
And in my experience, this leads to reversal.
🎯 Outlook & Targets
As long as price remains below the recent ATH, I see the risk shifting toward a broader reversal.
On the bigger picture, the “normal” corrective target becomes:
➡️ 166 zone
At the same time, we must keep in mind the previous key area:
📌 175 zone (old ATH / major reference level)
✅ Conclusion
Even without holding trades all the way to bigger targets, the key here is simple:
👉 a good short entry under ATH can offer excellent risk-to-reward
And even a controlled correction can realistically produce:
✅ 500+ pips
with the right entry and discipline.
🎯 Want More Trading Ideas?
📈 Join the FREE Forex & Gold Channel
👉 t.me/intradaytradingsignals
💎 Join the FREE Crypto Channel
👉 t.me/FanCryptocurrency
📈 Join the FREE Forex & Gold Channel
👉 t.me/intradaytradingsignals
💎 Join the FREE Crypto Channel
👉 t.me/FanCryptocurrency
Publicações relacionadas
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
🎯 Want More Trading Ideas?
📈 Join the FREE Forex & Gold Channel
👉 t.me/intradaytradingsignals
💎 Join the FREE Crypto Channel
👉 t.me/FanCryptocurrency
📈 Join the FREE Forex & Gold Channel
👉 t.me/intradaytradingsignals
💎 Join the FREE Crypto Channel
👉 t.me/FanCryptocurrency
Publicações relacionadas
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.