EUR/JPY Daily Outlook

Daily Pivots: (S1) 117.96; (P) 118.50; (R1) 118.88; More…

EUR/JPY’s decline accelerates to as low as 117.56 and took out 118.39/45 cluster support zone decisively. The development now argues that rise from 109.20 is completed. Intraday bias stays on the downside for 61.8% retracement of 109.20 to 124.08 at 114.88 next. On the upside, above 118.62 minor resistance will turn bias neutral and bring recovery. But upside should be limited by 120.43 resistance and bring another fall.

In the bigger picture, the firm break of 38.2% retracement of 109.20 to 124.08 at 118.39 indicates that medium term rise from 109.20 is completed at 124.08. That’s well below 126.09 key support turned resistance. Also, EUR/JPY failed to sustain above 55 week EMA. Deeper decline would now be seen back to 109.20 low. Overall, the down trend from 149.76 (2014 high) is not completed yet. Break of 109.20 will resume such down trend towards 94.11 low. In any case, break of 126.09 is needed needed to confirm medium term reversal.

EUR/JPY 4 Hours Chart

EUR/JPY Daily Chart

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