EUR/JPY Daily Outlook

Daily Pivots: (S1) 134.38; (P) 135.16; (R1) 135.97; More.

EUR/JPY's rebound from 131.41 extends further to as high as 136.35 so far today and at this point, intraday bias remains on the upside as long as 135.02 minor support holds. Further rally should still be see towards 139.21 high but we'd still prefer to seen upside to be limited below there and bring fall resumption. However, break of 139.21 will indicate that medium term up trend has resumed. On the downside, below 135.02 will turn intraday outlook neutral first. Further break of 133.36 will indicate that rebound from 131.41 has completed and will put focus back to this low.

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 since EUR/JPY is still holding above the medium term trend line. But even in case of up trend resumption, 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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