EUR/JPY Daily Outlook

Daily Pivots: (S1) 132.46; (P) 133.71; (R1) 134.46; More.

EUR/JPY is still staying in tight range below 135.15 and outlook remains neutral for the moment. However, note that a break of 135.15 resistance will suggests that fall from 139.21 has completed with a head and shoulder bottom. In such case, strong rally should be seen to 139.21 high and above. On the downside, below 132.97 minor support will argue that rebound from 131.41 has completed and EUR/JPY test medium term trend line support again. Sustained trading below the mentioned trend line will be an important indication of medium term reversal and should bring deeper fall to next key support level at 124.35.

In the bigger picture, rise from 112.10 is treated as part of the consolidation in the larger down trend form 08 high of 169.96 only. Considering bearish divergence condition in daily MACD and RSI, such rise is tentatively treated as completed at 139.21 already. Break of mentioned trend line support from 112.10 will add much credence to this case. Further break of 124.35 will confirm and bring retest of 112.10 low next. Meanwhile, note that another rise cannot be ruled out for the moment. But upside should be limited by resistance zone of 50% retracement of 169.96 to 112.10 at 141.03 and 61.8% retracement at 147.85 and finally bring reversal.

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