EUR/JPY Daily Outlook
Daily Pivots: (S1) 125.93; (P) 126.18; (R1) 126.48;
EUR/JPY recovered strongly after dipping to 124.66. The development suggests that recovery from 122.06 is still in progress. Intraday bias is mildly on the upside for 127.28 and above. In this case, we'd expect strong resistance above 61.8% retracement of 132.36 to 122.06 at 128.42 to complete it and bring down trend resumption. Meanwhile, below 124.66 will turn bias to the downside for 122.06 low.
In the bigger picture, medium term correction from 149.76 is still in progress and would extend to 100% projection of 149.76 to 126.09 from 141.04 at 117.37. We'll look for bottoming signal around 61.8% retracement of 94.11 to 149.76 at 115.36. Break of 132.36 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will stay bearish in case of rebound.
