EUR/JPY Daily FX Analysis: Navigating Neutral Bias and Potential Shifts

The EUR/JPY currency pair is exhibiting a neutral bias currently, as market participants monitor potential extensions of the recent corrective pattern. Initial support and resistance pivot points for the day are calculated at 162.06 (S1) and 163.18 (R1), respectively, with the pivot point resting at 162.54 (P).

Current Intraday Dynamics

Currently, the trading sentiment for EUR/JPY holds steady, with no strong directional momentum indicated. The pair may continue the correction that commenced from the peak of 163.70. A decisive downward movement below the minor support level of 161.67 could drive the forex pair toward channel support, which is currently positioned at 161.18. Should this support be breached, a further slide to the 38.2% Fibonacci retracement level at 159.66, accounting for the range between 153.15 and 163.70, may occur.

Potential Rally Resumption

Conversely, should the EUR/JPY pair manage a strong breakout above 163.70, it would likely rejuvenate the upward trend that started from 153.15, possibly retesting the previous high at 164.29.

Long-Term Technical Outlook

Zooming out to a broader perspective, price movements dating back to the medium term peak of 164.29 are interpreted as corrective phases in the grand scheme of the uptrend that began at 139.05. As long as the key level of 148.38—which previously served as resistance and now acts as support—remains intact, there is anticipation that the larger upward trend from the 2020 low of 114.42 will continue. This bullish scenario sets the stage for potential ascension beyond the 164.29 mark, eyeing the high of 169.96 recorded in 2008 as the next milestone.

EURJPY, Forex, Analysis