EUR/JPY Daily Outlook

Daily Pivots: (S1) 127.04; (P) 127.55; (R1) 128.09; More….

EUR/JPY’s strong rebound and breach of 128.50 minor resistance argues that pull back from 130.33 is completed at 126.63. Intraday bias is back on the upside for 130.33 first. Break will resume the rebound from 124.61 and target 133.47 key resistance next. On the downside, though, below 126.63 will turn focus back to 124.61 low.

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.