EUR/JPY Daily Outlook – ActionForex

Daily Pivots: (S1) 182.78; (P) 183.42; (R1) 184.06; More…

EUR/JPY is staying in consolidations above 181.76 and intraday bias stays neutral. Risk remains on the downside as long as 186.86 holds, in case of strong recovery. Break of 181.76 and sustained trading below 55 D EMA (now at 182.31) should solidify the case that fall from 186.86 medium term top is correcting whole rise from 154.77. Deeper decline should then be seen to 38.2% retracement of 154.77 to 186.86 at 174.60.

In the bigger picture, up trend from 114.42 (2020 low) is in progress and and met 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 173.32) holds, even in case of deep pullback. Sustained break of 186.31 will pave the way to 78.6% projection at 194.88 next.

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