EUR/JPY Mid-Day Outlook

Daily Pivots: (S1) 116.05; (P) 118.74; (R1) 120.18; More.

EUR/JPY recovers mildly after diving to 116.55 earlier today, just inch above 116.47 support. Though, intraday bias remains on the downside as long as 120.99 minor resistance holds. As discussed before, rebound from 116.47 could have completed at 126.24. Break of 116.47 will bring retest of 113.63 low. On the upside, above 120.99 will turn intraday outlook neutral again. Further break of 126.24 will indicate that corrective rise from 113.63 is in progress to 131.02 or above before completion.

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. But upside is 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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