EUR/JPY Daily Outlook

Daily Pivots: (S1) 160.85; (P) 161.59; (R1) 162.85; More...

Currently, the intraday bias for EUR/JPY is neutral. After reaching a low of 159.74, a recovery may be seen. However, as long as the resistance at 162.88 remains intact, a further decline is favored. Should the price drop below 159.74, the next target support level will be at 156.16. Conversely, if the resistance at 162.88 is broken, it would set up a potential retest of 164.89.

On a larger scale, the price movements from the high of 175.41 are perceived as a corrective phase following the significant rally from 114.42, which was established in 2020. The consolidation range is anticipated to be set between the 38.2% retracement level of that rally at 152.11 and the 175.41 high. A decisive breach of 152.11 could indicate that a deeper corrective phase is in progress.

Market Context and Analysis

The recent fluctuations in EUR/JPY highlight a complex balance between bullish and bearish pressures. Traders are keenly monitoring the resistance and support levels identified in the daily pivot points.

Key Levels to Watch

1. Support: The key support level to watch is at 156.16. This level is crucial for maintaining the integrity of any bullish recovery.

2. Resistance: The resistance zone to keep an eye on includes 162.88, as a break above this level would signal a potential upward correction towards the higher points.

Traders should be prepared for volatility, especially if the prices approach these significant levels. Market sentiment continues to play a crucial role in determining the movement of EUR/JPY amid broader economic indicators and other geopolitical influences.

EUR/JPY, analysis, forex