EUR/JPY Daily Outlook

Daily Pivots: (S1) 127.11; (P) 128.73; (R1) 129.59; More….

Focus is now on 127.78 support after the sharp decline from 130.33. Firm break there will confirm completion of the rebound from 124.61. Retest of 124.61 should be seen back then. Nonetheless, break of 103.33 will resume the rebound from 124.61 to retest 133.47 high.

In the bigger picture, despite rebounding strongly ahead of 124.08 resistance turned support, there was no clear follow through buying. Note again that there is bearish divergence in daily MACD. Firm break of 124.08 will confirm trend reversal. That is, whole rise from 109.03 (2016 low) has completed at 137.49 already. In that case, deeper fall should be seen back to 61.8% retracement of 109.03 to 137.49 at 119.90 and below. Nonetheless, decisive break of 133.47 key resistance will likely extend the rise from 109.03 through 137.49 high.