EUR/JPY Daily Outlook

EUR/JPY Daily Outlook

Daily Pivots: (S1) 124.08; (P) 124.65; (R1) 125.12; More

With 123.79 minor support intact, rebound from 118.71 could extend higher to retest 127.70 resistance. Break there will confirm resumption of whole rise from 94.11 and should target 130 psychological level next. On the downside, below 123.79 minor support will suggest that consolidation from 127.70 is still in progress and has started another leg for 118.71 and below. But in that case, we'd expect downside to be contained by 117.04 (38.2% retracement of 100.32 to 127.70 at 117.24) to complete the consolidation.

In the bigger picture, whole down trend from 169.96 (2008 high) has completed at 94.11 already, on bullish convergence condition in weekly MACD. Rise from there isn't finished yet and is expected to continue to 50% retracement of 169.96 to 94.11 at 132.03 next. Eventually, such rise would likely extend to 139.21 resistance and above. And, we'll stay bullish as long as 111.43 resistance turned support holds.