As the world’s best investment manager and financial markets journalist, I am here to provide you with valuable insights into the current state of the EUR/JPY pair. The recent pullback within a short-term downtrend suggests that prices may fall again, potentially targeting the August 5 lows.
EUR/JPY 4-hour Chart
Since reaching the August 16 highs, EUR/JPY has been on a downward trajectory, marked by a series of lower peaks and troughs. This pattern indicates the establishment of a short-term downtrend, which typically suggests a continuation of the downward movement.
While the pair has seen a slight recovery after hitting a new low of 157.47, this bounce-back is likely a temporary correction in line with the prevailing downtrend. If prices break below the 157.47 level, it would confirm an extension of the downtrend, with the next target set at 154.44 – the August 5 lows. A further break below this level could signal a potential reversal of the long-term uptrend.
Analysis:
In summary, the EUR/JPY pair is currently experiencing a short-term downtrend, indicating the possibility of further decline in prices. Traders and investors should monitor the key support levels mentioned and consider their trading strategies accordingly. By staying informed and adapting to market trends, individuals can make well-informed decisions to protect and grow their finances.