Key Moments
- EUR/JPY is trading at 182.38 following a downside breakout, with bearish momentum in focus
- Price action is targeting the ATR-based level at 181.59, with an extended objective near the 1.618 Fibonacci area at 181.25
- The pair’s current daily ATR stands at 123 pips, above its 90-day average of 102 pips, underscoring elevated volatility
Bearish Setup Following Breakout
Forex Strategy maintains a bearish view on EUR/JPY, with the pair quoted at 182.38 after a breakout move. The setup favors continued downside, with traders monitoring price action for follow-through below current levels.
The immediate focus is on a move toward the Average True Range (ATR) target in the 181.59 area. Beyond that, the broader intraday objective is aligned with the 1.618 Fibonacci level around 181.25, which serves as the main downside target for the session.
Technical Levels and Volatility Metrics
| Metric | Value / Level |
|---|---|
| Current EUR/JPY level | 182.38 |
| ATR target area | 181.59 |
| 1.618 Fibonacci target area | 181.25 |
| Current daily ATR | 123 pips per day |
| 90-day average ATR | 102 pips per day |
The strategy notes the emergence of convergence signals on the hourly timeframe, which are being watched in the context of the ongoing bearish bias. Volatility remains elevated, with the current daily ATR at 123 pips, above the 90-day average of 102 pips, suggesting wider intraday price swings.
Influence of USDX and Market Direction
USDX is described as currently threatening to move higher, and traders are advised to track its behavior as a potential guide for broader market direction. The interaction between EUR/JPY price action and USDX dynamics is being monitored closely as part of the overall bearish trading plan.
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