EUR/JPY Price Action: Is It Retesting a Reversal Pattern?

Key Takeaways: 

• The weekly chart shows a strong bullish structure forming a higher low
• Price is currently retesting a prominent head and shoulders reversal pattern
• The daily chart confirms a bullish momentum shift with a double bottom pattern
• A break and retest setup at the 184.706 - 184.532 support level dictates the next move 

What is the technical price action on EUR/JPY is telling us?  

Weekly Chart   

The weekly chart on EUR/JPY is showing a strong bullish structure using simple price action. Price is potentially forming its final higher low before continuing its move to the upside. 

Here is what I notice on the weekly timeframe:  

• The weekly chart remains strongly bullish trend 
• Price is currently forming a potential higher low, which may support another move to the upside. 
• Retesting a strong reversal pattern (head and shoulder) 
• If buyers maintain control, the bullish trend could continue higher 

Daily Chart  

Daily Chart Simple Price Action Analysis 

How Does the daily chart on EUR/JPY shift in momentum?  

On the daily chart, momentum remains bullish as price breaks above a key resistance zone. A potential retest of this area as new support, combined with the double bottom reversal pattern, adds stronger confirmation for a possible move higher.  

Here is what I notice on the daily timeframe:  

• Daily has already shift to bullish trend.   
• Price is already breaking above a key resistance zone, and already retesting it as new support 
• The double bottom pattern adds strong bullish confirmation 
• 50 EMA indicator could also use as a support 
• This increases the probability of a continued move higher 

What is the best forex technical setup for trading right now? 

Using simple price action, I approach this setup with a classic break and retest strategy. This specific forex technical setup could easily repeat a familiar market move. It also adds a higher probability of success to the trade. 

Bullish Scenario  

EUR/JPY could potentially rally to the upside if:  

• Retest daily support level (184.706 - 184.532)  
• Confirm rejection at daily support (bullish candle stick confirmation)  

Trade Idea:  

• Target price or take profit at 185.800 
• Stop-loss placed below daily support zone  

Note: This trade is considered a higher-probability setup since it aligns with the overall trend.  

Bearish Scenario  

EUR/JPY could potentially move to the downside if:  

• Break and retest daily support level (184.706 - 184.532)  
• Confirm a bearish candle stick confirmation at daily resistance zone  

Trade Idea:  

• Target Price or take profit at 183.706 
• Stop-loss place above potential resistance level (once support level is broken)  

Note: High-risk trade is less favorable, could get you a low probability trade and tighter risk reward ratio. 

Final Take 

EUR/JPY still looks bullish.

The market is currently sitting at a key support level and If buyers continue to defend this area, price could potentially continue pushing higher.

Stay patient and let the market show its first hand before reacting!

Because In trading, the best setups come to those who wait for price action to do the talking.

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Disclaimer:   
Trading forex and derivative instruments involves substantial risk and may not be suitable for all individuals. Only use funds that you are prepared to lose. It is important to understand how these markets work and the risks involved before trading, and to seek independent financial advice if needed. All market analysis and insights shared are intended for educational and informational purposes only and should not be considered financial or investment advice. May 14, 2026