EUR/JPY Daily Outlook

EUR/JPY Daily Outlook

Daily Pivots: (S1) 131.91; (P) 132.56; (R1) 133.50; More

EUR/JPY recovered strongly after hitting 131.63 and intraday bias is turned neutral after taking out 132.68 minor resistance. On the downside, break of 131.63 will bring deeper fall back to 127.96 key support level. On the upside, above 134.94 will extend the rally from 127.96 but we'll be cautious on reversal as it approaches 139.21 resistance.

In the bigger picture, the medium term up trend from 94.11 is still in progress and there is no clear sign of reversal yet. But it should be noted that upside momentum has been very unconvincing since then. Even in case of further rally, the cross will likely see strong resistance between 139.21 and 61.8% retracement of 169.96 to 94.11 at 140.98 to limit upside and bring reversal. Meanwhile, a break of 127.96 will be a strong signal of reversal and will turn focus to 124.95 for confirmation.