EUR/JPY Daily Outlook

Daily Pivots: (S1) 121.32; (P) 122.05; (R1) 122.54; More.

With 4 hours MACD crossed above signal line, an intraday low should be in place at 120.69 and some more consolidation should now be seen. Stronger recovery cannot be ruled out but upside should be limited by 124.73 support turned resistance and bring fall resumption. Below 120.69 will target 100% projection projection of 134.36 to 124.73 from 126.96 at 117.33 next.

In the bigger picture, medium term rebound from 112.10, which is treated as a correction to long term down trend from 2008 high of 169.96, should have completed at 139.21 already, after multiple failure to sustain above 55 weeks EMA. Current decline is tentatively treated as resumption of the down trend and should target 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, medium term outlook will remain bearish.

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