EUR/JPY Daily Outlook

Daily Pivots: (S1) 162.62; (P) 163.22; (R1) 163.77; More.

EUR/JPY's retreat from 164.97 extended further to 162.55 and recovers mildly since then. As discussed before, an intraday top is in place at 164.97 with 4 hours MACD staying below signal line. Further pull back could still be seen. However, rise from 151.71 should still be in force as long as the inner rising trend line support (now at 162.24) holds. Above 163.82 will suggest that retreat from 164.97 has completed and bring rally resumption towards upper end of the medium term range near to 168.93 high.

On the downside, though, sustained trading below the mentioned trend line support will be the first signal that rise from 151.71 has completed. Break of 158.24 support (50% retracement of 151.71 to 164.97 at 158.34) will confirm this case and bring deeper decline towards the lower end of the medium term range near to 151.71.

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.

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