The Daily Forecaster: EURJPY

Price: 98.43
Bias: I suspect the 98.80-04 area will cap for a correction lower

The underlying MT direction is bearish while the daily bias is neutral. This may indicate price consolidation or an unclear wave structure that needs confirmation. Note key MT support & resistance levels that may break the MT trend or would suggest a resumption of the move lower. It is very important that you consider either bullish or bearish set up patterns in indicators or lower time frame charts to support S&R breaks.

Consider buy set ups at: 99.15
Consider sell set ups at: 98.80-04

Resistance	98.56	98.80-04	99.35	99.70	100.04-27	100.61
Support	98.10-18	97.75	97.27-43	96.90-07	96.31-58	96.10

Daily outlook 

The recycling in EURUSD propped up price here and to above the prior 98.46 high. While 98.10-18 supports this can extend a little higher to the 98.850-04 area. However, I suspect this will cap for a correction at the very least. Beyond this I feel we have to treat the next move with care given the risk of losses in EURUSD. Thus, only above 99.10 would extend gains through 99.35 & 99.70 to the 100.04-257 area minimum and probably the 100.61 area before the downside can resume.
Any direct loss of 98.00 would risk losses back to the 97.27-73 lows while below is the 96.90-07 projection. Take care here as this could still provoke a correction higher. Below 96.90 would extend losses to 96.10

Medium Term Outlook

12th January: Without a doubt the main risk is lower and it's more a case of whether it's direct or manages to scrape a pullback to the 100.04-61 area. Larger projections are pointing to the 96.10 and
94.90 areas. Thus, watching the near-term and keeping in mind the 1.2602 and 1.2548 support in EURUSD (which is expected to provide a deep correction) and any break below 76.60-77 USDJPY or
above 78.28 will provide respective follow-through.