Detailed FX Market Outlook and Analysis

EUR/JPY Daily Analysis 02-August-2022

EUR/JPY Daily Analysis

EUR/JPY’s decline continues today and it’s now pressing 134.11 key support turned resistance. Strong support could be seen from the current level to complete the pattern from 144.26 high. A break of 135.85 minor resistance will turn bias back to the upside for a stronger rebound. However, a sustained break of 134.11 will carry larger bearish implications and target a 161.8% projection of 144.26 to 136.85 from 142.31 at 130.32.

In the bigger picture, the up trend from 114.42 (2020 low) is seen as the third leg of the pattern from 109.30 (2016 low). Further rally is in favor as long as 134.11 resistance turned support holds, even in case of deep pull back. The next target is 149.76 (2015 high). However, a sustained break of 134.11 will be a sign of medium-term bearish reversal and turn focus to 124.37 support for confirmation.

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