EUR/JPY Daily Outlook

Daily Pivots: (S1) 121.45; (P) 121.83; (R1) 122.50; More…

EUR/JPY is staying in the correction from 124.08 and intraday bias remains neutral for the moment. Rebound from 109.20 is not finished yet. Break of 124.08 will extend such rise and target 126.09 key resistance next. Meanwhile, below 120.54 will target 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39). We’d expect strong support from there to contain downside.

In the bigger picture, price actions from 109.20 medium term bottom are seen as part of a medium term corrective pattern from 149.76. There is prospect of another rise towards 126.09 key resistance level before completion. But even in that case, we’d expect strong resistance between 126.09 and 141.04 to limit upside, at least on first attempt. Sustained trading below 55 day EMA will pave the way to retest 109.20.

EUR/JPY 4 Hours Chart

EUR/JPY Daily Chart

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