EUR/JPY Daily Outlook

Daily Pivots: (S1) 161.77; (P) 162.19; (R1) 162.94; More.

As discussed before, with 4 hours MACD staying above signal line, and mild bullish convergence condition in 4 hours MACD and RSI, the corrective fall from 164.97 could have completed at 160.58 already. Intraday outlook is neutral for the moment. Break of 162.98 resistance will confirm this case and bring stronger rise to retest 164.97. However, below 160.58 again will indicate that fall from 164.97 has resumed for 158.24 cluster support.

Also, note that, rise from 151.71 could still be in force with 158.24 support (50% retracement of 151.71 to 164.97 at 158.34) remains intact. Break of 164.97 will indicate such rally has resumed for upper end of the medium term range near to 168.93 high. However, break of 158.24 support will confirm this rally from 151.71 has completed 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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