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The EUR/JPY currency pair remained confined to a consolidation range above the 176.19 support level last week, keeping the immediate technical outlook neutral. Analysts expect strong buying support around the 175.26 to 175.41 zone in the event of another downward push. A bullish divergence noted on the 4-hour MACD indicator suggests downside momentum is fading, signaling that a potential short-term floor could be forming near current levels.
For currency traders, technical levels will be pivotal in determining the pair's next directional move. A decisive breakout above the resistance key level of 179.29 is required to confirm a short-term bottom and shift the bias to the upside. Conversely, a sustained decline below the critical support region would open the door for deeper corrections, making risk management essential for short-term positions.
Looking ahead, traders should monitor market sentiment surrounding the European Central Bank and Bank of Japan monetary policy expectations. Price action around the 179.29 resistance and 175.26 support boundaries will dictate whether the pair breaks out into a new trend or continues its current consolidation phase.
