Detailed FX Market Outlook and Analysis

EUR/JPY Daily Analysis 18-JAN-2023

EUR/JPY Daily Analysis

EUR/JPY rebounded strongly today but stays below 142.84 resistance. Intraday bias remains neutral first. On the downside, the break of 138.00 support should resume the whole decline from 148.38 to 135.40 Fibonacci level next. however, a firm break of 142.84 will argue that the correction from 148.38 has been completed and brought a stronger rise back to 146.71 resistance.

In the bigger picture, as long as 55 weeks EMA (now at 138.64) holds, the larger up trend from 114.42 (2020 low) is still in progress for 149.76 long-term resistance. However, a firm break of 55 weeks EMA will bring a deeper fall to 38.2% retracement of 114.42 to 148.38 at 135.40. Sustained break there will raise the chance of trend reversal and target a 61.8% retracement at 127.39.

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