EUR/JPY has been trading within a symmetrical triangle formation on the 4-hour timeframe, suggesting potential bearish pressure as the pair continues to make lower highs while finding support along a horizontal baseline around 161.000.

The pair is currently trading at 161.976, positioned between the 200 SMA (red line) and 100 SMA (blue line), which are now displaying a bearish configuration with the faster moving average crossing below the slower one. This bearish crossover typically signals weakening upward momentum and potential downside risks ahead.

Stochastic oscillator is approaching overbought territory and showing signs of turning lower, indicating that bullish momentum may be fading and sellers could soon regain control. Similarly, the RSI (14) is hovering around midrange levels but appears to be losing upward momentum, reinforcing the potential for renewed selling pressure.

The recent price action shows a bounce from the lower support of the triangle, but the rally appears to be losing steam as it approaches the descending resistance line. A decisive break below the 161.000 support level could trigger a significant downside move, potentially targeting the 160.000 psychological level.

On the upside, immediate resistance lies at the descending trendline around 162.300, followed by the recent swing high near 163.000. A breakout above these levels would invalidate the bearish triangle pattern and could signal a potential trend reversal.

EURJPY could take cues from overall market sentiment, as traders are waiting with bated breaths ahead of Liberation Day or the implementation of another round of U.S. tariffs on its trade partners. Reciprocal measures are likely, keeping global trade tensions elevated and favoring safe-haven assets like the Japanese yen.

However, any decision to delay or lift tariffs after discussions could lead to a relief rally for riskier holdings, including the euro which is reacting to Trump’s higher trade levies on European imports.