EUR/JPY: Intraday Short Opportunity as Resistance Holds

Technical Analysis & Entry Rationale

Good morning, KoraFX community. Let's turn our attention to EUR/JPY. Currently, the pair is trading around 162.67, showing a modest 0.29% gain (0.47 points) over the last 24 hours, but the overall trend remains firmly sideways, as indicated by recent price action within the day range of 161.97 to 163.37.
My analysis suggests we are seeing a clear struggle around the upper end of this consolidation. The immediate resistance at 163.37 is proving to be a formidable barrier. Price has approached this level, but momentum appears to be waning on the intraday charts. For me, this is a key level being tested, and the current rejection signals a potential short opportunity. My entry for this intraday trade is set at 162.9, just below the 163.00 psychological level, anticipating a move back down within the established sideways range.

Risk Management & Profit Targets

With any trade, robust risk management is paramount. For this EUR/JPY short, my stop loss is placed at 164.00. This level offers sufficient room above the 163.37 resistance, accommodating minor whipsaws while protecting capital if my analysis of the resistance level is incorrect and price breaks out higher.
On the downside, my take profit target is set at 160.7. This target aligns nicely with the next significant support level at 160.