EUR/JPY Daily Outlook

Intraday bias in EUR/JPY remains neutral for the moment. As long as 130.38 resistance holds, deeper decline is expected in the cross. As noted decline from 131.39 is seen as correcting whole rise from 141.84. Below 127.55 will target 38.2% retracement of 114.84 to 131.39 at 125.05. Nonetheless, break of 130.38 will argue that the pull back is completed and turn focus back to 131.39 high.

Daily Pivots: (S1) 128.73; (P) 129.04; (R1) 129.55; More…

Intraday bias in EUR/JPY remains neutral for the moment. As long as 130.38 resistance holds, deeper decline is expected in the cross. As noted decline from 131.39 is seen as correcting whole rise from 141.84. Below 127.55 will target 38.2% retracement of 114.84 to 131.39 at 125.05. Nonetheless, break of 130.38 will argue that the pull back is completed and turn focus back to 131.39 high.

In the bigger picture, the down trend from 149.76 (2014 high) is completed at 109.03 (2016 low). Current rally from 109.03 should be at the same degree as the fall from 149.76 to 109.03. Further rise is expected to 61.8% retracement of 149.76 to 109.03 at 134.20. Sustained break there will pave the way to key long term resistance zone at 141.04/149.76. Medium term outlook will remain bullish as long as 124.08 resistance turned support holds. However, firm break of 124.08 will argue that rise from 109.03 is completed and turn outlook bearish.

EUR/JPY 4 Hours Chart

EUR/JPY Daily Chart

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