EUR/JPY Analysis
The rebound in EUR/JPY from 153.19 has the potential for further extension, yet caution is warranted as the upside is anticipated to be capped below the minor resistance at 158.40. Should this resistance level endure, it could signal another impending decline. Conversely, a breach below 155.98 would shift the bias to the downside, instigating a retest of the recent low at 153.19. A sustained break of 153.19, coupled with continued trading below the 38.2% retracement level of the upward movement from 139.09 to 164.33 at 154.68, would set the stage for targeting the 61.8% retracement at 149.13.
Examining the broader perspective, the price actions stemming from the medium-term zenith at 164.33 are tentatively construed as a correction within the ascent from 139.09. As long as the support-turned-resistance level at 148.52 (the high of 2022) remains intact, the overarching upward trend from the 2020 low at 114.46 could potentially resume, eventually surpassing the 164.33 medium-term high.
Analysis Summary
EUR/JPY’s rebound from 153.19 may extend, but caution is advised below 158.40 resistance. A breach below 155.98 could trigger a decline, retesting 153.19, with a further bearish outlook upon breaking 154.68.
Key Points:
- EUR/JPY’s rebound faces potential extension, but resistance at 158.40 could limit the upside.
- Downside bias emerges below 155.98, targeting a retest of 153.19.
- The broader perspective suggests a correction, with the 148.52 resistance indicating the potential for the larger uptrend to resume.
