EURJPY has broken ou...from CLOVER GOLD FX

EURJPY has broken out of a flat horizontal channel after completing an ABC corrective structure, indicating a shift in market sentiment from consolidation to impulsive bullish momentum. Price has aggressively rallied toward a key multi-month horizontal resistance zone around 176 which previously acted as a strong supply area. This level aligns with a potential reversal zone and price is currently testing this resistance with extended bullish candles, suggesting overbought conditions. If the pair fails to break above and sustain beyond the resistance we could expect a corrective pullback toward the channel breakout zone near 168 which may now act as support. Traders should watch for bearish rejection candles or divergence signals around the resistance for possible short setups.

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The Dollar Index on the 4H timeframe is moving within a clear ascending channel structure showing a strong bullish momentum after breaking above a key resistance zone that now acts as support. The recent breakout confirms the continuation of the uptrend suggesting that buyers are in control and aiming for a higher swing within the channel. Each corrective wave has been followed by a strong impulsive leg maintaining market structure and validating the channel’s reliability. As long as price holds above the breakout zone the bullish outlook remains valid with potential for further upside movement toward the upper boundary of the channel completing the fifth wave of the sequence.

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EURAUD on the 4H timeframe is showing a clear bearish structure as the market breaks below the major support zone that has now turned into strong resistance. After completing a corrective ABC cycle followed by a five-wave rising wedge pattern, price failed to sustain higher highs and reversed sharply from the upper trendline. The break and retest of the highlighted zone confirm seller dominance, and the consistent lower lows signal continuation of downside momentum. With the structure shifting fully bearish, the current breakout suggests that EURAUD may extend toward deeper downside targets as long as price remains below the resistance area, giving sellers control and increasing the probability of further decline.

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#DXY 🇺🇸 📍 The Dollar Index is the key chart to watch closely in the coming weeks. Every major move across FX, metals, and indices will be shaped by what happens here. As we always say, trading plan is everything!

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