EUR/JPY Daily Outlook

EUR/JPY Daily Outlook

Daily Pivots: (S1) 112.13; (P) 112.76; (R1) 113.82; More

EUR/JPY rises further to as high as 133.65 so far and intraday bias is on the upside for the moment. Current rise from 100.32 is part of the rally from 94.11 and should target 161.8% projection of 94.11 to 104.58 from 100.32 at 117.26 next. On the downside, break of 110.62 is needed to indicate short term topping. Otherwise, outlook will stay bullish even in case of retreat.

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 sustained break above 55 weeks EMA affirmed this view. Break of 111.43 resistance should have confirmed 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'll stay bullish as long as 104.58 resistance turned support holds.