Eurjpy Eyes Next Target

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Eurjpy Eyes Next Target

Eur/Jpy In Consolidation Phase, Eyes 167.96 As Target

EUR/JPY appears to be trying to get out of its consolidation phase in the short-medium term. According to experts, the EUR/JPY pair will likely move higher once it gets out of consolidation.

If EUR/JPY manages to break 166.96, it will confirm that the trend has shifted to bulls. In that case, the first resistance will be 167.96, followed by the next target at 168.10. The 169.68 will also be a key target as that also aligns with the 61.8% fib level of the range.

Eur/Jpy Could Target Open Gap

At the same time, there's also chance for a deeper pullback. This is due to the fact that EUR/JPY has an open gap and we all know that gaps tend to close sooner or later.

The open gap of the EUR/JPY is located in the 164.45 - 164.90 region. There's a good chance that the gap will be filled, which means we can expect a downside in the EUR/JPY.

In that case, we can't rule out the possibility of a visit lower towards the 164.45. In the process, an increase in the selling intensity could also open the doors to 164.00 and then 163.00.

The MACD indicator also continues to fall down as the EUR/JPY is trying to get out of consolidation. At the same time, it also hints at declining momentum, which doesn't relate to the decline in the price.

That's also a sign that the EUR/JPY could likely be setting up for a big bearish trend instead of a bullish one. Right now, its tough to forecast a definite direction for the EUR/JPY given the recent circumstances.

Also, an indirect factor that can affect the EUR/JPY is Trump, who will be the next president of the USA. If Trump imposes high tariffs on Japan, it will affect the JPY.

Similarly, tariffs on the Eurozone could also negatively impact the EUR's value would lead to downside in the EUR/JPY.

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