EUR/JPY Daily Outlook
With 139.87 minor resistance intact, deeper decline is still expected in EUR/JPY. Consolidation pattern from 145.68 is in the third leg and current fall should target 136.22 support. However, break of 139.87 will dampen this immediate bearish view and bring consolidations before staging another decline.
In the bigger picture, loss of upside momentum was seen in bearish divergence condition in daily and weekly MACD. However, EUR/JPY is so far holding above 135.50 key support. Thus, there is no confirmation of trend reversal yet. Break of 145.68 will extend the up trend from 94.11 towards 76.4% retracement of 169.96 to 94.11 at 152.59 before topping. Meanwhile, break of 135.50 will confirm reversal and target 124.95 support.
Source: actionforex
