#EURJPY ANALYSIS 8-12 December

Whilst the currency pair #EURJPY remains in a sideways trading pattern, indicating a period of consolidation where price movements are somewhat limited and lack a clear trend direction, there are potential opportunities for traders to capitalize on. A pullback to the significant level of 178.85 could present a favorable moment for a bounce, particularly as this price point aligns with the Fibonacci 50% retracement level, which is often regarded as a critical area for potential reversals in price action. Additionally, this level coincides with a Fair Value Gap (FVG), which further strengthens the likelihood of a bullish reaction from this area. If the price indeed holds above this retracement level and shows signs of strength, traders can anticipate that the subsequent price action may target higher resistance levels, specifically 179.98, 181.98, and ultimately 185.12. Each of these targets represents a strategic point where traders may look to take profits or reassess their positions based on market conditions. The 179.98 level serves as the first hurdle, which, if breached, could pave the way for further upward momentum towards 181.98, a level that could attract more buyers entering the market. Finally, the 185.12 target represents a more ambitious goal, potentially drawing in significant market interest and trading volume as it approaches. Overall, the analysis of #EURJPY's current sideways trend, combined with key technical levels such as the Fibonacci retracement and FVG, suggests that traders should remain vigilant. Monitoring price action closely around 178.85 will be crucial, as it may dictate the next significant moves in this currency pair. A successful bounce from this level could not only provide a trading opportunity but also set the stage for a more pronounced upward trend in the near future.

Chris

Thetradingmentors | Trader