EUR/JPY Daily Outlook

Daily Pivots: (S1) 121.29; (P) 121.57; (R1) 122.02; More

Intraday bias in EUR/JPY remains neutral at this point. With 122.24 minor resistance intact, the correction from 127.70 could extend lower. But we'd expect downside to be contained by 117.04 (38.2% retracement of 100.32 to 127.70 at 117.24) and bring rebound. Meanwhile, above 122.25 will flip bias back to the upside for retesting 127.70 high instead. However, note that break of 117.04 would trigger deeper pull back to 50% retracement at 114.01 and below.

In the bigger picture, whole down trend from 169.96 (2008 high) has completed at 94.11 already, on bullish convergence condition in weekly MACD. Rise from there isn't finished yet and is expected to continue to 50% retracement of 169.96 to 94.11 at 132.03 next. Eventually, such rise would likely extend to 139.21 resistance and above. And, we'll stay bullish as long as 111.43 resistance turned support holds.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box