EUR/JPY Mid-Day Outlook

Daily Pivots: (S1) 121.07; (P) 122.33; (R1) 123.66; More.

EUR/JPY strengthens mildly in early US session and rebound from 117.67 might be resuming. Intraday bias is mildly on the upside as long as 120.20 minor support holds. As discussed before, corrective nature of fall from 131.02 to 117.67 argues that rebound from 113.63 is still in progress and more upside is in favor to 131.02 or above. Though, we'd expected the corrective rise from 113.63 to be limited below 141.73 cluster resistance. On the downside, though, below 117.67 will flip intraday bias back to the downside for retesting 113.63 low.

In the bigger picture, as discussed before, whole down trend from 169.96 is still expected to continue after completing consolidation from 113.63. Break of this low will confirm that such fall has resumed and should target 76.4% retracement of 88.97 to 169.96 at 108.08. However, note that as long as 113.63 low holds, consolidation from there might still continue. Above 131.02 will bring another rise. However, upside is still expected to be limited below 141.73 cluster resistance (50% retracement of 169.96 to 113.63 at 141.79) to complete the correction.

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