EUR/JPY Daily Outlook

Daily Pivots: (S1) 158.66; (P) 159.40; (R1) 160.83; More...

The EUR/JPY currency pair has shown some recovery after a brief decline to 157.96, prompting a neutral stance on the current intraday bias. In terms of overall perspective, the consolidation pattern originating from the level of 154.40 appears to have the potential to extend further. Should the price fall below 157.96, the next support level to watch is at 156.16. Conversely, if the price breaks through the resistance at 161.48, it would indicate a return to an upward trend targeting the 164.07 resistance level.

Looking at the broader context, movements from the high of 175.41 are perceived as a corrective phase following the increase from the low of 114.42 recorded in 2020. The consolidation range has likely been established between the 38.2% retracement level of 114.42 to 175.41 at 152.11 and the 175.41 peak. However, a significant break below 152.11 would suggest that a deeper correction might be in progress.

Market Analysis

In analyzing the current market for EUR/JPY, traders should pay attention to these key pivot levels. The daily pivot point at 159.40 is crucial as it determines the overall market sentiment. If the price remains above this point, it may indicate bullish tendencies, whereas a drop below could signify bearish sentiments.

Future Projections

Moving forward, it is essential for traders to monitor both the support and resistance levels closely. A breach of 161.48 could lead to significant upward momentum, while falling below 157.96 might invoke bearish pressure that could push the pair towards 156.16. Awareness of these levels will enable traders to make more informed decisions.

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