The EUR/JPY pair has been in an uptrend for over two years, but a breakdown in July raised concerns about a possible trend reversal. Despite the significant bearish sign, there is still uncertainty about the future direction of the pair.
After breaking out of the rising channel in late July, EUR/JPY bottomed at the 154 level, near the blue 100-week Simple Moving Average (SMA). The pair then recovered, forming a bullish Dragonfly Doji pattern in early August.
Currently, EUR/JPY is trading in a range, with a break above 163.89 potentially signaling a continuation of the uptrend. On the other hand, a break below 154.41 could indicate a reversal of the long-term trend.
Analysis Breakdown:
- Current Trend: EUR/JPY has been in an uptrend for over two years.
- Key Levels: A break above 163.89 could signal a continuation of the uptrend, while a break below 154.41 may indicate a trend reversal.
- Indicators: The bullish Dragonfly Doji pattern formed in early August, providing some support for a potential uptrend continuation.
Overall, the future direction of EUR/JPY remains uncertain, with key levels to watch for potential trend confirmation or reversal. Traders and investors should monitor price action closely to make informed decisions about their positions.