EURJPY Forming Bullish ContinuatiomEURJPY is showing strong bullish continuation momentum after successfully retesting the previous resistance zone near 175.500–176.000, which has now turned into a solid support area. The market structure remains clearly bullish on the daily chart, with higher highs and higher lows forming consistently. The recent breakout and retest pattern signals renewed buyer strength, suggesting the potential for price to extend toward the 180.000–182.000 zone in the coming sessions. As long as price holds above the 176.000 level, the bullish bias remains firmly intact, favoring continuation trades to the upside.
From a fundamental perspective, the euro has gained fresh momentum due to increasing optimism surrounding the eurozone’s inflation stabilization and the European Central Bank maintaining a steady monetary stance. Meanwhile, the Japanese yen continues to weaken as the Bank of Japan maintains its ultra-loose policy and yields remain low compared to European rates. This divergence in monetary policies continues to drive investors toward higher-yielding currencies like the euro, fueling upward momentum in EURJPY.
Technically, momentum indicators support the bullish outlook, and any short-term pullback into the 176.000–176.500 region may provide an ideal buying opportunity. Traders are likely positioning for a continuation of the current trend, targeting higher liquidity levels toward 181.500 and 183.000 in the medium term. The overall sentiment remains positive for EURJPY, and the pair could continue to deliver profitable setups for trend-followers as the market sustains this strong upward trajectory.
