EUR/JPY Daily Outlook

Daily Pivots: (S1) 155.84; (P) 156.51; (R1) 157.00; More...

The intraday bias for EUR/JPY remains neutral as the pair experiences slight fluctuations. A further decline is anticipated, especially if the minor resistance at 158.19 holds strong. A decisive break below the 155.72 level would indicate that the downward trend from the peak of 175.41 is likely to continue. In such a situation, a retest of the support level at 154.40 is expected, and any firm break below this support would confirm ongoing downward momentum.

Conversely, if the resistance at 158.19 is surpassed, the market sentiment could shift towards the upside, suggesting an extension of the corrective pattern from the 154.40 level, potentially leading to another upward move.

Broader Market Context

In a more extensive view of market movements, price actions observed since the peak of 175.41 are interpreted as a corrective phase following a significant rally from the 2020 low of 114.42. A crucial support level is noted at 152.11, which corresponds to the 38.2% retracement of the rally from 114.42 to 175.41. This support is expected to effectively contain further downside. However, if the price breaks below the 152.11 level, it could signify a more substantial decline.

In such a scenario, the next target for the EUR/JPY pair would be at the 100% projection level, translating to 154.40 from the previous high of 166.67, which could further hint at a downward trajectory towards the 145.66 mark.

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