EUR/JPY Daily Outlook

EUR/JPY Daily Outlook

Daily Pivots: (S1) 105.97; (P) 106.47; (R1) 106.82; More

Intraday bias in EUR/JPY remains neutral for the moment and more consolidative trading could be seen below 107.13. And, break of 105.71 minor support will bring deeper retreat to 4 hours 55 EMA (now at 105.21). But downside should be contained above 103.04 cluster support and bring another rally. Above 107.13 will target 100% projection of 94.11 to 104.58 from 100.32 at 110.79 next, which is close to 111.43 key resistance.

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. The strong break above 55 weeks EMA affirmed this view. Break of 111.43 resistance will confirm this bullish case and bring further medium term rise to 123.31 (38.2% retracement of 169.96 to 94.11 at 123.08) and above. And, we'd favor this bullish scenario as long as 100.32 support holds.