EUR/JPY declines as Yen strengthens on Takaichi win, intervention speculation

💡 DMK Insight

EUR/JPY’s third day of correction signals potential volatility ahead. Trading around 182.70 and down 0.50% today, this pair is showing signs of weakness after a strong run. For traders, this could be a critical moment to reassess positions. If the pair breaks below 182.50, it might trigger further selling pressure, especially with the current market sentiment leaning bearish. On the flip side, a bounce back above 183.00 could indicate a reversal, attracting buyers. Keep an eye on broader economic indicators, particularly any shifts in the ECB or BoJ policies, as these could significantly impact the cross. Watch for the upcoming economic data releases from both the Eurozone and Japan, as they could provide the catalyst needed for a breakout or a deeper correction. The next few days will be crucial for determining whether this correction is a mere pullback or the start of a more significant trend shift.