Daily Pivots: (S1) 184.76; (P) 185.28; (R1) 186.21; More…
Intraday bias in EUR/JPY stays neutral for the moment. Price actions from 186.86 are developing in to a near term consolidation pattern. On the downside, below 184.26 support will bring another fall as the third leg. But downside should be contained by 38.2% retracement of 172.24 to 186.86 at 181.27 to bring rebound. On the upside, decisive break of 186.86 will resume larger up trend.
In the bigger picture, up trend from 114.42 (2020 low) is in progress. Upside momentum has been diminishing as seen in bearish divergence condition in D MACD. But there is not clear sign of topping yet. On resumption, next target is 78.6% projection of 124.37 to 175.41 from 154.77 at 194.88 next. Meanwhile, outlook will stay bullish as long as 55 W EMA (now at 174.22) holds, even in case of deep pullback.
