Daily Pivots: (S1) 103.46; (P) 103.94; (R1) 104.37; More
EUR/JPY's decline resumed after brief consolidation and reaches as low as 102.88 so far. Intraday bias is back on the downside 61.8% retracement of 97.03 to 111.43 at 102.53. Break will pave the way to retest 97.03 low. On the upside, 104.44 minor resistance will turn bias neutral and bring consolidations. But upside should be limited well below 108.00 and bring another fall.
In the bigger picture, with EUR/JPY now back below 55 days and 55 weeks EMA, the development is starting to favor the case that the down trend from 169.69 isn't completed yet. That is another low below 97.03 would be seen. Nonetheless, note that price actions from 139.21 are likely unfolding as a falling wedge pattern with bullish convergence condition in weekly MACD. Current fall from 111.43 should be the last leg in such pattern in the bearish case. And thus, the break of 97.03 support should be marginal and strong support should be seen there to finally bring trend reversal. Hence, while deeper decline could be seen, we'll look for bottoming signs as EUR/JPY breaks 97.03. Meanwhile, above 111.43 will revive the case that EUR/JPY has indeed bottomed and would turn outlook bullish.
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