EUR/JPY picks up to levels near 182.00, remains sharply lower on the week

💡 DMK Insight

The EUR/JPY bounce from 180.85 could signal a potential reversal, but traders need to tread carefully. After a steep decline, the Euro is showing signs of recovery, currently trading at 181.70. This move is crucial as it comes off a six-week low, suggesting that the market might be looking for a support level. However, the broader context remains shaky, with economic indicators from both the Eurozone and Japan influencing volatility. Traders should monitor the 180.85 level closely; a sustained move below could trigger further selling pressure. Conversely, if the Euro can maintain its position above 181.00, it might attract buyers looking for a reversal play. It’s worth noting that this bounce could be short-lived if macroeconomic data disappoints. Keep an eye on upcoming economic releases from both regions, as they could sway market sentiment significantly. Additionally, watch for any shifts in risk appetite that could impact the JPY, especially given its safe-haven status. The immediate focus should be on the 181.00 and 180.85 levels for potential trading opportunities.