The EUR/JPY daily forecast and analysis suggest that the intraday bias remains neutral, with a bearish outlook as long as the resistance at 162.87 is intact. If the price falls below the minor support level of 157.71, the bias could turn back to the downside, leading to a potential drop to the 153.15 support level.
However, a decisive break above the resistance at 162.87 could indicate a short-term bottoming process and shift the bias to the upside for a stronger rebound. In the bigger picture, the fall from the medium-term top at 175.41 is seen as a correction of the overall rise from the 2020 low of 114.42.
A deeper fall may occur as long as the 55-week Exponential Moving Average (EMA) holds at 161.79, but strong support is expected between 153.15 and the 38.2% retracement level of 114.42 to 175.41 at 152.11. This support zone could bring about a rebound, at least on the initial attempt. On the other hand, a sustained trading above the 55-week EMA would suggest that the medium-term corrective pattern’s range has already been established.
It is essential for traders and investors to closely monitor these key levels and indicators to make well-informed decisions regarding their EUR/JPY positions. By staying informed about the latest developments and technical analysis, market participants can better navigate the fluctuations in the currency pair and potentially capitalize on trading opportunities.
