EUR/JPY Daily Outlook

Daily Pivots: (S1) 122.96; (P) 123.49; (R1) 123.95;

Intraday bias in EUR/JPY remains neutral for the moment. Further fall is in favor with 124.31 minor resistance intact. On the downside, sustained break of 38.2% retracement of 114.42 to 127.07 at 122.23 will extend the fall from 127.07. Next target is 61.8% retracement at 119.25, which is close to 119.31 key support. However, on the upside, firm break of 124.31 will argue that the pull back from 127.07 has completed. Intraday bias will be turned back to the upside for retesting this high.

In the bigger picture, rise from 114.42 is seen as a medium term rising leg inside a long term sideway pattern. Further rise is expected as long as 119.31 support holds. Break of 127.07 will target 61.8% retracement of 137.49 (2018 high) to 114.42 at 128.67 next. However, firm break of 119.31 will argue that the rise from 114.42 has completed and turn focus back to this low.