EUR/JPY Daily Outlook

Daily Pivots: (S1) 160.96; (P) 162.09; (R1) 163.08; More.

EUR/JPY's fall from 164.97 extends further to as low as 161.10 before recovering mildly. At this point, intraday bias remains on the downside as long as 162.84 minor resistance holds. Break of the short term rising trend line (now at 162.94) is treated as the first signal that whole rise from 151.71 has completed. Further decline could now 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 162.84 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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