EUR/JPY Daily Outlook

EUR/JPY Daily Outlook

Daily Pivots: (S1) 142.60; (P) 143.19; (R1) 143.85; More...

Intraday bias in EUR/JPY remains on the moment. Break of 100% projection of 136.22 to 141.26 from 138.78 at 143.82 will pave the way for a test on 145.68 high next. Decisive break there is needed to confirm up trend resumption or we'd see another decline to extend the consolidation from 145.68. On the downside, break of 141.26 support will indicate that rebound from 136.22 has completed and will turn bias back to the downside for 138.78 and below.

In the bigger picture, loss of upside momentum was seen in bearish divergence condition in daily and weekly MACD. However, EUR/JPY is so far holding above 135.50 key support. Thus, there is no confirmation of trend reversal yet. Break of 145.68 will extend the up trend from 94.11 towards 76.4% retracement of 169.96 to 94.11 at 152.59 before topping. Meanwhile, break of 135.50 will confirm reversal and target 124.95 support.