EUR/JPY Daily Outlook

Daily Pivots: (S1) 130.68; (P) 131.62; (R1) 133.08; More.

EUR/JPY's rise accelerates further to as high as 134.50 today so far, meeting mentioned target of 38.2% retracement of 169.96 to 112.10 at 134.20. At this point, intraday bias remains on the upside as long as 130.82 minor support holds. Further rally could now be seen to next retracement level of 50% at 141.03. Below 130.82 will turn intraday outlook neutral first and bring pull back. But downside should be contained by 121.72/126.06 support zone and bring rally resumption.

In the bigger picture, meeting of mentioned 134.20 fibo resistance confirmed that EUR/JPY has made a medium term bottom at 112.10 already. While the current rise from 112.10 is still viewed as a correction in the larger down trend only, further rise is now expected towards 5 weeks EMA (now at 138.66) with prospect of reaching 61.8% retracement of 169.96 to 112.10 at 147.85. On the downside, below 122.09 support is needed to indicate that rise from 112.10 has completed. Otherwise, further rise is in favor in case of pull back.

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