EUR/JPY Daily Outlook

Daily Pivots: (S1) 162.66; (P) 163.27; (R1) 163.69; More.

EUR/JPY's fall from 164.97 resumes in early European by diving further to as low as 162.15. Break of the short term rising trend line (now at 162.62) is treated as the first signal that whole rise from 151.71 has completed. At this point, intraday bias remains on the downside as long as 163.23 minor resistance holds. Further decline could be seen towards 158.24 cluster support (50% retracement of 151.71 to 164.97 at 158.34) first. Break will confirm this case and bring deeper decline towards the lower end of the medium term range near to 151.71. On the upside, above 163.23 will turn intraday outlook neutral first.

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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