FX.co ★ jerome82 | EUR/JPY

EURJPY. Good day. The Euro/Yen pair has slowly started to move south, returning below the resistance zone, indicating a possibility of further downside movement. On the hourly chart, technical indicators have signaled a sell, although it has not been activated yet. At the same time, the Bollinger Bands are expanding, suggesting a likelihood of continued decline in the short term. Therefore, I am considering opening short positions with a tentative target of around 177.00 within the day. Additionally, a double top pattern is visible on the chart, hinting at a potential decrease as well. On the 4-hour chart, indicators still lean towards a northward movement, but within a correction phase, the pair is approaching a test of the middle Bollinger Band from above. Depending on a breakout or a bounce, it will reveal the medium-term sentiment. Personally, I am more inclined towards a breakout and a decline in line with my preferences, but in any case, I will wait for the test results.