EUR/JPY Daily Outlook

Daily Pivots: (S1) 133.69; (P) 138.79; (R1) 142.55; More.

EUR/HJPY's sharp fall extended to as low as 135.04 and recovers. An intraday low might be in place and some sideway trading could be seen. Nevertheless, consolidation should be relatively brief as long as 468.89 resistance holds. Further fall is expected to 100% projection of 169.96 to 147.03 from 156.84 at 133.91. Break will put next long term fibonacci level of 50% retracement of 88.97 to 169.96 at 129.47 into focus. On the upside, though, above 146.89 will suggests that a short term bottom is formed and bring lengthier consolidation before staging another fall.

In the bigger picture, the sharp fall from 169.96 is still in progress. 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 indicate that a medium term bottom is formed and turn medium term outlook neutral for larger scale consolidation.

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