EUR/JPY Daily Outlook

Daily Pivots: (S1) 152.94; (P) 155.85; (R1) 158.48; More..

EUR/JPY’s fall from 164.29 extended to as low as 153.15 and breached 154.32 cluster support (38.2% retracement of 139.05 to 164.29 at 154.64). There is no clear sign of bottoming yet and intraday bias stays on the downside. Sustained trading below 154.32 will target 61.8% retracement at 148.69 next. On the upside, above 156.42 minor resistance will turn intraday bias neutral and bring consolidations first, before staging another decline.

In the bigger picture, bearish divergence condition in 55 D EMA indicates that a medium term top was e formed at 164.29 already. Price actions from there are tentatively seen as a correction only. There is no clear sign that the up trend from 144.42 (2020 low) has completed yet. As long as 55 W EMA (now at 152.12) holds, another rally through 164.29 is still in favor as a later stage.

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