Daily Pivots: (S1) 165.57; (P) 167.39; (R1) 168.64; More…
EUR/JPY’s steep decline from 175.41 extends further today and there is no sign of bottoming yet. Medium term channel support is also breached. Intraday bias stays on the downside for 164.29 key resistance turned support. Firm break there will argue that larger scale correction is underway for 155.91 fibonacci level. On the upside, above 166.97 minor resistance will turn intraday bias neutral first.
In the bigger picture, immediate focus is now on 164.29 resistance turned support. Strong rebound from there will retain medium term bullishness for resuming the up trend through 175.41 at a later stage. However, decisive break of 164.29 will indicate that fall from 175.41 is at least correcting the rise from 124.73, with risk of bearish trend reversal. Deeper decline would be seen to 38.2% retracement of 124.37 to 175.41 at 155.91.
