2026-02-26 05:30:00
Trend traders gather ’round!
EUR/JPY looks ready to turn lower from a key resistance area after seeing sharp upswings in the past few weeks.
Think the pair will extend a longer-term trend in the next trading sessions?
U.S. tariff uncertainty and mixed mid-tier data out of the Euro Area kept a lid on the euro, even as European equities pushed to fresh record highs.
The Japanese yen is not looking great either. The safe haven is feeling pressure as traders weigh possible government intervention and ongoing questions around the Bank of Japan’s policy path.
All that said, these themes could shift in the next few days, with both the Euro Area and Japan set to release more mid-tier data that could stir things up.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Euro and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/JPY, which staged sharp rallies after finding support at 181.00, is now struggling to push decisively above the 184.50 psychological handle.
As you can see, that level lines up with the R2 Pivot Point (184.55) and the top of a descending channel that has been in play since late January.
A few more red candlesticks and sustained trading below 184.00 could open the door for a pullback toward the 182.00 mid-channel area, if not a retest of the 181.00 February lows.
Of course, the bulls may simply be catching their breath. If that is the case, an upside breakout is still on the table.
A clean move above the channel and steady trading north of 185.00 could put 186.00 and even 187.00 back in focus as the next inflection points.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art highlights EUR/JPY’s downtrend. But as any pro will tell you, a great setup can still fail if the trader lacks the discipline to execute around it well.
In “Unknown Market Wizards,” Jack Schwager interviews successful traders to reveal a common truth: their edge isn’t just knowledge or skills—it’s their psychological resilience and rigid risk control. Whether you’re navigating tariff shocks or safe haven flows into the franc, learn how the “wizards” stay clinical when the rest of the market is emotional.
Master Your Trading Mindset with the Unknown Market Wizards book on Amazon!
Disclosure: We may earn a commission from our partners if you sign up through our links, at no extra cost to you.
