Daily Pivots: (S1) 186.82; (P) 187.15; (R1) 187.64; More…
EUR/JPY’s steep decline and strong break of 55 D EMA suggests medium term topping at 187.93, on bearish divergence condition in D MACD. Deeper fall could be seen to 180.78. But strong support should emerge there to bring rebound, at least on first attempt. However, decisive break of 180.78 will argue that it’s already correcting whole five-wave impulse from 154.77. Next target will be 38.2% retracement of 154.77 to 187.93 at 175.26.
In the bigger picture, while today’s fall is steep, there is no sign of reversal yet. Up trend from 114.42 is still expected to resume at a later stage to 78.6% projection of 124.37 (2022 low) to 175.41 (2025 high) from 154.77 at 194.88. However, sustained break of 55 W EMA (now at 177.50) will argue that it’s already in a medium term down trend to 175.41 resistance turned support and below.
