EUR/JPY Daily Outlook

Daily Pivots: (S1) 160.48; (P) 161.76; (R1) 162.50; More.

EUR/JPY's failure to take out 162.98 resistance decisively and subsequent break of 160.58 support on a sharp fall indicates that decline from 164.97 has resumed. Focus is now on mentioned 158.24 support (50% retracement of 151.71 to 164.97 at 158.34). Break of 158.24 support will confirm that rally from 151.71 has completed bring deeper decline towards the lower end of the medium term range near to 151.71. On the upside, above 161.00 minor resistance will turn intraday outlook neutral first. But another fall is still in favor as long as recovery is limited below 163.11 resistance.

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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