Daily Pivots: (S1) 185.27; (P) 185.77; (R1) 186.72; More…
EUR/JPY retreated notably after edging higher to 186.86 and intraday bias is turned neutral. Some consolidations would be seen but downside should be contained above 182.75 support. On the upside, firm break of 186.86 will resume larger up trend to 138.2% projection of 151.06 to 173.87 from 172.24 at 189.94.
In the bigger picture, up trend from 114.42 (2020 low) is in progress and should target 61.8% projection of 124.37 to 175.41 from 154.77 at 186.31. Considering bearish divergence condition in D MACD, upside could be capped by 186.31 on first attempt. Still, outlook will stay bullish as long as 55 W EMA (now at 172.58) holds, even in case of deep pullback. Sustained break of 186.31 will pave the way to 78.6% projection at 194.88 next.
