EUR/JPY Mid-Day Outlook

Daily Pivots: (S1) 153.07; (P) 153.61; (R1) 154.23; More.

EUR/JPY's recovery continues today and edges higher to 154.40 so far. As discussed before, recent volatile price actions and the unclear structure of the fall from 161.38 mixed up the outlook. Nevertheless, note that EUR/JPY is still limited by 4 hours 55 EMA (now at 154.96) so far. Outlook is still mildly bearish. Further break of 151.82 low will indicate that recent decline has resumed for next downside target of 149.27 support. On the other hand, above 157.01 resistance will indicate that fall from 161.38 has completed and will bring stronger rebound to retest this resistance.

In the bigger picture, EUR/JPY turned into sideway consolidation after medium term up trend was limited at 168.93. Note the corrective nature of the rise from 152.11 suggest that whole fall from 167.72 is still in progress. Firm break of 152.11 low will confirm and bring retest of 149.72 low. On the upside, though, firm break of 161.38 resistance is needed to indicate fall from 167.72 has completed. Otherwise, short term outlook will be neutral at best.

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