EUR/JPY Daily Outlook and Analysis
The intraday outlook for EUR/JPY remains positive at this stage. The current increase from 137.41 is unfolding, and a further rally is expected to retest the 148.42 high. Should the currency pair fall below the minor support level of 145.17, the intraday bias would shift to neutral. Nevertheless, the outlook will maintain a cautious bullish stance as long as the 142.57 support level holds, even in the event of a pullback.
Looking at the bigger picture, the larger uptrend from the 114.46 (2020 low) is still underway as long as the 55-week EMA (currently at 139.82) holds, targeting the long-term resistance of 149.80. However, a sustained breach of the 55-week EMA would result in a deeper decline to the 38.2% retracement of 114.46 to 148.42, which sits at 135.44. A decisive break at this level would increase the likelihood of a trend reversal, with the next target being the 61.8% retracement at 127.43.