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.