EUR/JPY Daily Outlook

Daily Pivots: (S1) 111.85; (P) 113.00; (R1) 113.88; More.

EUR/JPY dips mildly after recovering to 114.13 as intraday bias is turned neutral again. After all, note that consolidations from 108.82 might still extend further. But upside is expected to be limited by 38.2% retracement of 127.88 to 108.82 at 116.10 and bring fall resumption. On the downside, below 109.76 minor support will suggest that recent down trend is resuming for 61.8% projection of 169.96 to 112.10 from 139.21 at 103.45 next.

In the bigger picture, fall from 139.21 is treated as resumption of long term down trend from 2007 high of 169.96 and should target 61.8% projection of 169.96 to 112.10 from 139.21 at 103.45 which is close to 100 psychological level. Though, we'd expect strong support between 2000 low of 88.96 and 100 psychological level to contain downside and bring reversal. On the upside, break of 127.88 resistance is needed to be the first signal of bottoming. Otherwise, outlook will remain bearish.

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