Daily Pivots: (S1) 182.72; (P) 184.36; (R1) 185.27; More…
While EUR/JPY’s current fall is steep, overall price actions from 186.86 are still seen as a consolidation pattern. Downside should be contained by 38.2% retracement of 172.24 to 186.86 at 181.27 to bring rebound. Break of 186.86 resistance is expected at a later stage to resume the larger up trend. However, sustained break of 181.27 will indicate that larger scale correction is already underway.
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.
