EUR/JPY: Bearish Momentum Continues - Targeting Lower Support Levels

Market Context & Technical Read

The EUR/JPY pair is firmly entrenched in a bearish trend, as evidenced by its current price action. Trading at 161.59, we've seen a 0.38% drop over the last 24 hours, shedding 0.61 yen. The day range, spanning from 160.67 to 162.51, highlights the volatility and the constant pressure on this pair. We've seen the market attempting to hold around the 161 level, but the overall momentum points south. The 162.51 level has proven to be a significant resistance point, and its inability to break above it indicates that sellers are firmly in control. The immediate support at 160.67 is a key level being tested repeatedly. A decisive break below this would open the door for further downside.

Swing Trade Setup & Rationale

Given the prevailing bearish trend and the rejections at higher levels, I'm looking for a short opportunity on EUR/JPY. My setup for a swing trade involves entering short at 161.9. This entry point allows for a retest of a previous minor support now turned resistance, aligning with institutional order flow where short positions are often accumulated on minor bounces within a downtrend. My stop loss is set at 163.4, strategically placed above the significant resistance level of 162.51, giving the trade room but protecting capital if