EUR/JPY Daily Outlook

Daily Pivots: (S1) 161.57; (P) 162.28; (R1) 162.96; More.

EUR/JPY weakens again in European session after recovery was limited by 4 hours 55 EMA. At this point, intraday bias remains on the downside as long as 162.27 minor resistance holds. As discussed before, sustained trading below the short term rising trend line is treated as the first signal that whole rise from 151.71 has completed. Further decline should 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 162.27 will indicate that some more sideway trading would be seen before another fall.

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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