EUR/JPY Daily Outlook

EUR/JPY Daily Outlook

Daily Pivots: (S1) 103.44; (P) 103.77; (R1) 103.98; More

EUR/JPY edged higher to 104.09 but lacked follow through buying. Intraday bias remains neutral for consolidations. First. Downside should be contained by 102.00 minor support. Above 103.99 will target 104.58 and break there will confirm rise resumption for 61.8% projection of 94.11 to 104.58 from 100.32 at 106.79 next.

In the bigger picture, we're favoring the case that whole down trend from 169.96 (2008 high) has completed at 94.11 already, on bullish convergence condition in weekly MACD. Break of 111.43 resistance will confirm this bullish case and bring further medium term rise to 123.31 and above (38.2% retracement of 169.96 to 94.11 at 123.08). And, we'd favor this bullish scenario as long as 100.14 support holds. Though, considering that EUR/JPY can't take out 55 weeks EMA decisively yet, break of 100.14 will favor another low below 94.11 instead.