EUR/JPY is sporting long wicks near a major support zone after trading lower earlier this week.
Are we looking at a trend retracement opportunity in the making?
Here’s what we’re seeing on the daily time frame:
EUR/JPY Daily Forex Chart Faster with TradingView Chart by TradingView
In case you missed it, fears of currency intervention from Japanese and even U.S. officials had traders pulling back on their short yen positions.
The euro, meanwhile, gave up a few pips as U.S. EU trade tensions eased and U.S. dollar demand improved.
Will EUR/JPY’s tides change in the next trading sessions when the Euro Area countries drop GDP and CPI reports?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Euro and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/JPY, which has been trading within an ascending channel since March 2025, was recently rejected near the 186.00 psychological handle and is now trading closer to the 183.60 area.
What makes EUR/JPY’s current levels more interesting is that they line up with the chart’s Pivot Point line and a previous inflection point.
More importantly, this week’s daily candles are showing long bullish wicks, signaling strong buying pressure around the 182.00 zone.
Bullish candlesticks from here could attract fresh buying interest and push EUR/JPY back toward the 186.00 previous highs, if not fresh monthly highs.
On the other hand, bearish candles and sustained trading below the 182.00 area would open the door to deeper pullbacks, potentially toward the 180.00 psychological level.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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