EUR/JPY Daily Outlook

Daily Pivots: (S1) 141.00; (P) 148.04; (R1) 152.12; More.

EUR/JPY's decline extends further, taking out mentioned initial target of 61.8% projection of 169.96 to 147.03 from 156.84 at 142.67. EUR/JPY reaches as low as 139.95 so far and is now close to long term fibonacci support of 38.2% retracement of 88.97 to 169.96 at 139.02. Some initial support could be seen there. Nevertheless, recovery should be relatively brief as long as 146.89 resistance holds and recent decline is still expected to resume sooner rather than later. Next target is 100% projection of 169.96 to 147.03 from 156.84 at 133.91. Though, above 146.89 will indicate that a short term low is formed and bring longer consolidation.

In the bigger picture, the sharp fall from 169.96 is still in progress and should be targeting long term fibonacci level of 38.2% retracement of 88.97 to 169.96 at 139.02. Though some support could be seen there on oversold condition, with weekly RSI deep below 30 level, and bring consolidation. Medium term outlook will remain bearish as long as 156.84 resistance holds and the down trend from 169.96 is expected to extend further to 61.8% retracement of 88.97 to 169.96 at 119.9, which is close to 120 psychological level. However, a break of 156.84 will confirm that a medium term bottom is formed and turn medium term outlook neutral for larger scale consolidation.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box