EUR/JPY Daily Outlook

Daily Pivots: (S1) 124.42; (P) 124.96; (R1) 125.57;

Intraday bias in EUR/JPY remains neutral first. On the upside, break of 125.58 will resume larger rally from 114.42. Next target is 100% projection of 114.42 to 124.43 from 119.31 at 129.32. However, break of 124.31 support will now confirm short term topping. In this case, deeper fall would be seen to 55 day EMA (now at 122.24) to correct the whole rise from 114.42.

In the bigger picture, whole down trend from 137.49 (2018 high) could have completed at 114.42 already. Rise from 114.42 would target 61.8% retracement of 137.49 to 114.42 at 128.67 next. Sustained break there will pave the way to 137.49 (2018 high). This will remain the preferred case for now, as long as 55 day EMA (now at 121.81) holds. However, sustained break of 55 day EMA will revive medium term bearishness for another low below 114.42 at a later stage.