Daily Pivots: (S1) 103.63; (P) 104.60; (R1) 105.22;
EUR/JPY drops further to as low as 130.40 so far today and at this point, intraday bias remains on the downside for a test on 100.74 support first. Break there will confirm resumption of whole decline from 123.31 and should target 61.8% projection of 123.31 to 100.74 from 111.57 at 97.62 next On the upside, break of 106.45 resistance is needed to indicate short term bottoming. Otherwise, we'll stay cautiously bearish even in case of recovery.
In the bigger picture, there is no signal of reversal yet with EUR/JPY staying below the falling 55 weeks EMA. Down trend from 2008 high of 169.96 is still in progress and should take out 100 psychological level eventually towards 100% projection of 139.21 to 105.42 from 123.31 at 89.52, which is close to 88.96 all time low. Though, sustained break of 55 weeks EMA (now at 111.86) will raise the odd of trend reversal and will turn focus back to 123.31 resistance for confirmation.
EUR/JPY drops further to as low as 130.40 so far today and at this point, intraday bias remains on the downside for a test on 100.74 support first. Break there will confirm resumption of whole decline from 123.31 and should target 61.8% projection of 123.31 to 100.74 from 111.57 at 97.62 next On the upside, break of 106.45 resistance is needed to indicate short term bottoming. Otherwise, we'll stay cautiously bearish even in case of recovery.
In the bigger picture, there is no signal of reversal yet with EUR/JPY staying below the falling 55 weeks EMA. Down trend from 2008 high of 169.96 is still in progress and should take out 100 psychological level eventually towards 100% projection of 139.21 to 105.42 from 123.31 at 89.52, which is close to 88.96 all time low. Though, sustained break of 55 weeks EMA (now at 111.86) will raise the odd of trend reversal and will turn focus back to 123.31 resistance for confirmation.