EUR/JPY Mid-Day Outlook

Daily Pivots: (S1) 117.90; (P) 121.10; (R1) 122.72; More.

EUR/JPY's break of 120.20 minor support flipped intraday bias back to the downside and argues that fall from 131.02 is resuming. Break of 117.67 will confirm this case and bring retest of 113.63 low first. On the upside, above 124.45 is needed to turn bias back the the upside and indicates that rebound from 133.63 is still in progress. Otherwise, further fall is still in favor in case of recovery.

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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