EUR/JPY Daily Outlook

EUR/JPY Daily Outlook

Daily Pivots: (S1) 131.67; (P) 132.18; (R1) 132.60; More

Intraday bias in EUR/JPY remains neutral for the moment. Above 133.48 minor resistance will extend the rise from 127.96. But in such case, we'd expect strong resistance below 139.21 to limit upside and bring reversal. Meanwhile, break of 131.42 will solidify the case of near term reversal and will turn bias to the downside for 127.96 support.

In the bigger picture, upside momentum in EUR/JPY remains rather unconvincing as seen in daily MACD. While further rally cannot be ruled out for the moment, the cross would likely face strong resistance from 139.21 and 61.8% retracement of 169.96 to 94.11 at 140.98. The upside from 94.11 should be close to forming a medium term top and turn into consolidation. Break of 127.96 will confirm topping and should bring correction back to 119.10 support.