4 min readEUR/JPY had a strong breakout yesterday, pushing above the 165.00 level for the first time since November 2024. This is a significant move, as it marks a reclaim of a zone that has capped price for the entirety of this year. With momentum clearly building, the market is now looking toward the next key level at 166.550, the first trouble area following the breakout.
If this momentum continues, the 166.550 zone could act as the next potential target for bulls. Price action has been strong, and the breakout was supported by clear trend structure and positive momentum across time frames.
On the 4-hour chart, EUR/JPY shows a solid bullish trend, with higher highs and higher lows driving price higher. The breakout above 165.00 confirmed strength, and the level marked as number 1 highlights the most recent local low, which serves as short-term invalidation. If this low is lost, we may see a retrace back down to the original breakout zone near 164.00 – 165.00, where buyers could perhaps look to re-accumulate.
Zooming into the 1-hour chart, the structure becomes even more defined. Price is currently testing the 165.80 zone, which is acting as a short-term resistance level. A break above this area could initiate the next leg up, but confirmation is key. Whether using volume, time-based triggers, or other tools, traders will perhaps want to wait for a confirmed breakout before assuming further continuation.
If the breakout does hold, the path toward 166.550 opens up, with little resistance between current price and that level. Meanwhile, downside risk is clearly defined by the recent higher low structure, providing clean areas for managing risk.
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