EUR/JPY Short Opportunity: Bearish Momentum Confirmed at Key Resistance

Market Context & Technical Read

The EUR/JPY pair is currently exhibiting a distinct bearish trend, trading around 161.55, reflecting a -0.4% change over the last 24 hours. From a technical perspective, we've seen a clear rejection from the 162.52 resistance level, which also marked the upper bound of yesterday's trading range. This failure to sustain prices above this critical level, despite attempts, strongly reinforces the prevailing downside momentum. Observing the daily chart, the market structure has notably shifted, confirming a series of lower highs and lower lows, which aligns with my short bias. This suggests that previous support levels are now acting as formidable resistance.

Swing Trade Setup: High Probability Zone

Based on this technical confluence, I'm eyeing a swing short position on EUR/JPY. My entry point is set at 161.9, anticipating a retest of this recently failed support turned resistance, which also aligns well within the current bearish rejection zone. To manage risk methodically, my Stop Loss is placed at 163.5. This level is strategically positioned above the 162.52 resistance, providing sufficient buffer against volatility while maintaining a favorable risk-reward profile. For profit taking, I'm targeting 1