EUR/JPY Daily Outlook

Daily Pivots: (S1) 161.32; (P) 162.13; (R1) 162.60; More.

EUR/JPY's rebound from 158.60 was limited below mentioned 163.09 resistance. Subsequent retreat sent EUR/JPY below 161.70 minor support and dragged 4 hours MACD below signal line, indicating an intraday top is already in place. Intraday bias is flipped back to the downside for 160.14 support first and then mentioned 158.24 cluster support (50% retracement of 151.71 to 164.97 at 158.34). As discussed before, break 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 162.13 will turn intraday outlook neutral again. Also, break of 163.09 resistance will confirm that fall from 1.6497 has completed with three waves corrective manner to 158.60. In such care, stronger rally should be seen to test this resistance first and then upper end of the medium term range near to 168.93.

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 argue 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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