Thu, Dec 08, 2022 @ 07:11 GMT

EUR/JPY Daily Outlook

Daily Pivots: (S1) 119.54; (P) 120.51; (R1) 121.08; More…

EUR/JPY’s sharp decline and break of 120.54 indicates that fall from 124.08 has resumed. Intraday bias is back on the downside for 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39). Nonetheless, such decline from 124.08 is still seen as a corrective move. Hence, we’d expect strong support from 118.39/45 to bring rebound. On the upside, above 120.54 minor resistance will turn bias back to the upside for 123.30/124.08 resistance zone.

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. Nonetheless, decisive break of 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39) will argue that rise from 109.20 is completed and turn outlook bearish for 61.8% retracement at 114.88 and below.

EUR/JPY 4 Hours Chart

EUR/JPY Daily Chart

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