EUR/JPY Daily Outlook

Daily Pivots: (S1) 120.18; (P) 122.73; (R1) 124.30; More.

EUR/JPY edged lower to 120.04 today and at this point, intraday bias remains on the downside as long as 122.06 minor resistance holds. As discussed before, rise from 115.88, as well as consolidation from 113.63 should have completed at 131.03 already. Further decline is now expected to 115.88 support first and then retest 113.63 low. Above 122.06 will turn intraday outlook neutral and bring recovery. But upside should be limited below 125.69 resistance and bring fall resumption.

In the bigger picture, whole decline from 169.96 is expected to develop into a five wave sequence, with first wave completed at 147.03, second at 156.84, third at 113.63. Price actions from 113.63 is treated as the fourth wave consolidation and might have completed at 131.03 already. Break of 115.88 support will add much credence to the case that down trend from 169.96 is resuming for 76.4% retracement of 88.97 to 169.96 at 108.08. On the upside, while another rise cannot be ruled out for the moment. Upside is expected to be limited below 141.73 cluster resistance (50% retracement of 169.96 to 113.63 at 141.79) and bring down trend resumption.

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