EUR/JPY Mid-Day Outlook

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

EUR/JPY recovers mildly after dipping to 116.42 and at this point, further fall is still in favor as long as 124.41 minor resistance holds. Retest of 113.63 low should be seen and break there will confirm that medium term down trend has resumed. On the upside, though, above 124.41 will argue that consolidation from 113.63 is still in progress and another rise could be seen to 131.02 or above to complete such consolidation.

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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