EUR/JPY Daily Outlook

Daily Pivots: (S1) 162.84; (P) 163.76; (R1) 164.86; More.

EUR/JPY's sideway trading form 164.86 continues today and with 4 hours MACD staying below signal line, an intraday top could be in place after meeting 1.8% projection of 151.71 to 161.71 from 158.24 at 164.42. Further pull back could be seen to 4 hours 55 EMA (now at 162.04). But still, break of 158.24 is need to indicate rise from 151.71 has completed. Otherwise, further rally is still in favor after pull back. On the upside, above 164.86 will indicate rally from 151.71 has resumed for upper side of the medium term range near to 168.93.

In the bigger picture, EUR/JPY turned into sideway consolidation after medium term up trend was limited at 168.93. It's unclear whether such consolidation has completed at 151.71 already and hence firm break of 168.93 high is needed to confirm resumption of the long term up trend. Meanwhile, on the downside, below 158.24 will suggest that such consolidation is going to extend further before completion.

Note EUR/JPY is still staying inside long term rising channel (support at 155.64). The long term up trend from 88.97 (00 low) is probably still in force. Nevertheless, more choppy trading should be seen with EUR/JPY still staying inside range of 149.27 and 168.93 before firm break above this 168.93 high.

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