EUR/JPY Daily Outlook

Daily Pivots: (S1) 125.77; (P) 126.23; (R1) 126.64; More.

With 4 hours MACD crossed below signal line, EUR/JPY's recovery from 124.73 has possibly completed at 126.96 after hitting 4 hours 55 EMA. Intraday bias is cautiously on the downside for 124.73 and break there will confirm fall resumption towards 100% projection of 138.47 to 126.88 from 134.36 at 122.77 next. On the upside, above 126.96 will bring another round of recovery but still, strong resistance should be seen at 38.2% retracement of 134.36 to 124.73 at 128.40 and bring fall resumption.

In the bigger picture, as noted before, medium term rebound from 112.10 might have completed at 139.21 already. Current decline is tentatively treated as resumption of the long term down trend from 169.96. Sustained break of 124.35 support will further affirm this bearish case and target a new low below 112.10. On the upside, break of 134.36 resistance is needed to invalidate this bearish view and suggest that EUR/JPY is still in consolidation to rise from 112.10 only. Otherwise, outlook will remain bearish.

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