EUR/JPY: The Yen Begins to Gain GroundEuro / Japanese YenFOREXCOM:EURJPYFOREXcomOver the past three trading sessions, the EUR/JPY pair has declined by up to 0.8%, as the yen has steadily gained strength, preventing the euro from maintaining its momentum in the short term. Selling pressure has held firm, especially after news that Japan finalized a new trade agreement with the United States, which lowered the initially proposed 25% tariff to 15%. This development has been perceived as a positive outcome for Japan and has supported strong demand for the yen in the latest trading session. Uptrend Remains Intact Despite the yen’s recent strength, it is important to note that the EUR/JPY pair remains in a well-defined uptrend, with sustained bullish momentum continuing to dominate the long-term outlook. Although some short-term selling corrections have emerged, they remain insufficient to break the current bullish structure. For now, the uptrend remains the most relevant technical formation in the chart and should continue to be monitored unless selling pressure becomes significantly stronger. RSI The RSI indicator has started to show lower highs, while price action continues to register higher highs. This event suggests the potential formation of a bearish divergence, which may indicate that the current selling correction could gain more traction in the coming sessions. MACD The MACD histogram remains close to the neutral zero line, indicating that no clear direction has formed in short-term moving average momentum. If this neutral setting continues, the chart could enter a more defined consolidation phase in the near term. Key Levels to Watch: 172.896 – Resistance Level: This level corresponds to the recent high, and any buying momentum strong enough to break it could confirm a bullish continuation, supporting the long-standing uptrend currently in place. 170.231 – Nearby Support: This level aligns with a short-term neutral zone and may act as a temporary barrier, limiting any bearish corrections that may arise in the sessions ahead. 166.930 – Key Support: This is a critical level not seen since June of this year. If bearish pressure intensifies and the price falls to this point, it could seriously jeopardize the bullish structure that has been holding so far. Written by Julian Pineda, CFA – Market Analyst