EUR/JPY Daily Outlook

Daily Pivots: (S1) 127.92; (P) 128.22; (R1) 128.73; More….

Intraday bias in EUR/JPY remains neutral for the moment, with focus on 127.69 support minor. Break there will indicate completion of rebound from 124.61, after rejection by 55 day EMA. Deeper fall would be seen back to retest 124.61, with prospect of resuming larger decline from 137.49. On the upside, though, break of 130.33 will resume the rebound from 124.61 to retest 133.47 resistance.

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.