EUR/JPY Daily Outlook

Daily Pivots: (S1) 120.31; (P) 123.38; (R1) 125.21; More.

EUR/JPY dropped to as low as 121.62 overnight and has met mentioned initial target of 100% projection of 138.47 to 126.88 from 134.36 at 122.77. At this point, intraday bias remains on the downside and further decline should be seen to 61.8% projection of 134.36 to 124.73 fro 126.96 at 121.00 first. Break will target 100% projection at 117.33 next. On the upside, above 123.58 minor resistance will turn intraday bias neutral and bring consolidations. But upside should be limited well below 126.96 resistance and bring fall resumption.

In the bigger picture, the firm break of 124.35 support affirm the case that medium term rebound from 112.10 has completed at 139.21 already. Current decline is likely resuming long term down trend from 2008 high of 169.96 for a new low below 112.10. On the upside, break of 126.88 support turned resistance is needed to be the first signal of bottoming. Otherwise, outlook will remain bearish.

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