EUR/JPY Mid-Day Outlook

Daily Pivots: (S1) 133.88; (P) 136.79; (R1) 138.64; More.

EUR/JPY's break of 134.16 suggest that fall from 156.84 has resumed. Though, downside momentum is not too convincing yet. Nevertheless, further decline is still in favor as long as 139.72 resistance holds. Next downside target is long term fibonacci level of 50% retracement of 88.97 to 169.96 at 129.47. On the upside, above 139.72 will indicate that a short term bottom is possibly in place and bring stronger rebound towards 147.03 support turned resistance before staging another fall.

In the bigger picture, the sharp fall from 169.96 is still in progress. Medium term outlook will remain bearish as long as 156.84 resistance holds and the down trend from 169.96 is expected to extend further to 61.8% retracement of 88.97 to 169.96 at 119.9, which is close to 120 psychological level. However, a break of 156.84 will indicate that a medium term bottom is formed and turn medium term outlook neutral for larger scale consolidation.

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