EUR/JPY Daily Outlook

Daily Pivots: (S1) 158.50; (P) 159.28; (R1) 159.96; More.

EUR/JPY recovers after decline from 164.97 just met 100% projection of 164.97 to 160.58 from 163.09 at 158.70 and was contained slightly above mentioned 158.24 support (50% retracement of 151.71 to 164.97 at 158.34). 4 hours MACD's cross above signal line and touching of 160.42 minor resistance indicates that an intraday low is in place at 158.60. Outlook is turned neutral for the moment. Though, on the upside, break of 163.09 resistance is needed to confirm fall from 164.97 has completed. Otherwise, short term risks remain mildly on the downside. On the downside, break of 158.24 support (50% retracement of 151.71 to 164.97 at 158.34) 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.

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. Though, below 158.24 support will argues that such consolidation is still in progress with at least another fall to the lower end of the medium term range before completion. However, strong rebound form 158.24, followed by break of 163.09 resistance, will leave the fall from 164.97 in corrective nature. Hence in such case, it will argue that rise from 151.1 is going to extend further to retest 168.93 high. And firm break of which will confirm the medium term up trend has resumed.

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