EUR/JPY Daily Outlook

Daily Pivots: (S1) 113.19; (P) 116.30; (R1) 118.98; More.

EUR/JPY's touching of 120.14 minor resistance with 4 hours MACD crossed above signal line indicates that a short term bottom might be in place. Intraday outlook is turned neutral for the moment with risk of rebounding further to 4 hours 55 EMA (now at 127.07). Though, upside should be limited below 132.18 resistance and bring down trend resumption again. On the downside, below 113.63 will indicate recent fall has resumed for 200% projection of 169.96 to 147.03 from 156.84 at 110.98 next.

In the bigger picture, the steep down trend from 169.96 is still in progress and has taken out long term fibonacci level of 61.8% retracement of 88.97 to 169.96 at 119.90. 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 132.18 resistance holds and another fall is still expected even in case of rebound. Medium term focus is now on 100 psychological level.

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