EUR/JPY Daily Outlook

Daily Pivots: (S1) 128.67; (P) 129.77; (R1) 131.44; More.

EUR/JPY's recovery was limited at 130.89 and weakens today. Such recovery might have completed and intraday bias is flipped back to the downside for 127.08 first. Break will confirm fall resumption to next key support level of 124.35 (161.8% projection of 139.21 to 131.41 from 136.87 at 124.25) next. On the upside, while another rise cannot be ruled out, upside is still expected to be limited by 131.70 resistance and bring fall resumption.

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. Break of the medium term trend line support solidifies the case that such medium term rebound has completed at 139.21 already, with bearish divergence condition in daily MACD and RSI. Further break of 124.35 support will confirm this case and argue that the down trend from 169.96 is resuming for a retest of 112.10 low next. On the upside, above 136.87 resistance is needed to revive the case that such medium term rise from 112.10 is still in progress. Otherwise, short term outlook will remain bearish in case of rebound.

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