Euro bears are holding their ground against the yen ahead of the ECB’s policy announcement!

Think EUR/JPY will keep inside its range pattern in the subsequent trading sessions?

Or is the pair ready for a breakout?

EUR/JPY 4-hour Forex Chart by TradingView

In a number of days, European Central Bank (ECB) members are widely expected to chop their rates of interest, dragging the bank’s deposit rate 25 bps lower to three.25%.

However the Japanese yen isn’t doing too hot either, because it bows right down to increased USD demand and an improvement in overall risk sentiment.

EUR/JPY is up by about 400 pips to date this month, because of ECB members coming out to support “gradualism” in cutting rates of interest.

Keep in mind that directional biases and volatility conditions in market price are typically driven by fundamentals. If you happen to haven’t yet done your homework on the euro and the Japanese yen, then it’s time to envision out the economic calendar and stay updated on each day fundamental news!

Will this week’s themes extend EUR/JPY’s monthly gains?

Take note that that pair is trading in a variety and that the 163.75 range resistance has been unbroken since August. Bearish candlesticks and sustained trading below the 162.85 Pivot Point line expose the pair to a possible move right down to the 162.00 psychological level, 161.50 100 SMA levels, or the 160.00 mid-range area.

In fact, EUR/JPY can also extend its October uptrend.

Keep a watch out for bullish candlesticks above the rising trend line within the 4-hour timeframe because it may lead to a different retest and perhaps even consistent trading above the R1 (163.80) Pivot Point line if not the 164.00 psychological level.

Whichever bias you find yourself trading, don’t forget to practice proper risk management and stay aware of top-tier market catalysts when trading this one. Good luck!