EURJPY traded sideways yesterday, holding near 177.30 amid conflicting signals from the main technical indicators, particularly as stochastic fluctuated above the 20 level, temporarily hindering the pair’s chances of resuming its bearish movement.

 

We note that the formation of additional resistance at 177.80 supports the chances of the pair initiating bearish waves soon, targeting 175.75, followed by the next main target near 174.95. However, a break above this resistance barrier would give the pair an opportunity to recover some of its losses through several bullish corrective waves, potentially targeting 178.60 and 179.45.

 

The expected trading range for today is between 175.75 and 177.70.

 

Trend forecast: Bearish