EUR/JPY Daily Outlook

Daily Pivots: (S1) 122.95; (P) 127.22; (R1) 129.82; More.

EUR/JPY's fall extends further to as low as 123.42 today and at this point, intraday bias remains on the downside as long as 128.76 minor resistance holds. The current decline is expected to extend further to next cluster target of 61.8% retracement of 88.97 to 169.96 at 119.90 and 161.8% projection of 169.96 to 147.03 from 156.84 at 119.74. On the upside, above 128.76 will turn intraday outlook neutral and bring consolidation. But recovery should be limited below 133.35 support turned resistance and bring fall resumption.

In the bigger picture, the steep down trend from 169.96 is still in progress and has taken out long term fibonacci level of 50% retracement of 88.97 to 169.96 at 129.46. The development so far suggests that fall from 169.96 is developing into a five wave decline and EUR/JPY is probably in the middle of it only. Medium term outlook will remain bearish as long as 141.73 resistance holds and another fall is still expected even in case of correction, targeting 61.8% retracement of 88.97 to 169.96 from at 119.90 next.

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