Daily Pivots: (S1) 161.65; (P) 163.34; (R1) 164.37; More….
Intraday bias in EUR/JPY stays on the downside despite today’s weak recovery. Prior break of 55 D EMA (now at 163.39) argues that corrective rebound from 154.40 has completed with three waves up to 166.67, ahead of61.8% retracement of 175.41 to 154.40 at 167.38. Further decline should be seen to 155.14 support next. For now, risk will stay on the downside as long as 165.02 resistance holds, in case of recovery.
In the bigger picture, price actions from 175.41 are seen as correction to rally from 114.42 (2020 low). The range of consolidation should have been set between 38.2% retracement of 114.42 to 175.41 at 152.11 and 175.41 high. However, decisive break of 152.11 would argue that deeper correction is underway.
 argues that corrective rebound from 154.40 has completed with three waves up to 166.67, ahead of61.8% retracement of 175.41 to 154.40 at 167.38. Further decline should be seen to 155.14 support next. For now, risk will stay on the downside as long as 165.02 resistance holds, in case of recovery.){kind=link}