EUR/JPY Daily Outlook

Daily Pivots: (S1) 124.30; (P) 125.80; (R1) 126.99; More….

EUR/JPY reached as low as 124.61 so far and breached 100% projection of 137.49 to 128.94 from 133.47 at 124.92. There is no sign of bottoming yet despite oversold condition in both 4 hour and daily RSI. Intraday bias remains on the downside. Sustained trading below 124.92 will pave the way to 161.8% projection at 119.63 next. On the upside, above 126.83 minor resistance will turn intraday bias neutral and bring consolidation first. But near term outlook will remain bearish as long as 128.94 support turned resistance holds.

In the bigger picture, the case of medium term trend reversal continues to build up. That is rise from 109.03 (2016 low) could have completed at 137.49 already. This is supported by bearish divergence in daily MACD current downside acceleration, as well as the break of 38.2% retracement of 109.03 to 137.49 at 126.61. Deeper decline should be seen to 61.8% retracement at 119.90 and below. This will be the preferred case as long as 128.94 support turned resistance holds.

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