EUR/JPY Daily Outlook

Daily Pivots: (S1) 133.94; (P) 134.71; (R1) 136.06; More.

EUR/JPY's break of 135.15 resistance suggests that fall from 139.21 has completed at 131.41 already. Intraday bias is flipped to the upside and further rise could be seen. But we'd still slightly prefer the current rebound to be limited below 139.21 high and bring fall resumption. On the downside, below 133.36 will suggest that rebound from 131.41 has completed and will turn bias back to the downside for 131.41 low first.

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.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box